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Bitcoin Price Prediction: Following a notable upsurge in January End, the Bitcoin price was relatively stable through this week. The daily candles with short bodies and longer ones reflect uncertainty and initiation from bulls and bears. However, a look at a lower time frame projects this consolidation as the formation of a bullish pennant pattern. Here’s how this pattern may influence the near future growth of BTC.
- The pennant Pattern breakout will release the Bitcoin price from the current uncertainty.
- The coin price above the 20-and-50-day EMAs provides additional support to market buyers
- The intraday trading volume in Bitcoin is $13.9 Billion, indicating an 11.% gain.
Analyst Projects $31K as Firm Floor Based on 200WMA
Bitcoin 200 week moving average is 31k. When bitcoin price diverges from 200WMA, in accumulation (blue) and bull markets (orange/red), bitcoin has never gone below 200WMA. So 31k might be the absolute floor, and bitcoin might never see 31k ever again IMO. Also 200WMA is rising… pic.twitter.com/3kqSbXWLjU
— PlanB (@100trillionUSD) February 3, 2024
According to insights from the renowned analyst @planB, Bitcoin’s 200-week moving average (WMA) currently stands at $31,000, serving as a critical benchmark for the cryptocurrency’s price movements. Historically, during accumulation phases (marked in blue) and bull markets (indicated by orange/red), Bitcoin’s price has never fallen below its 200 WMA, suggesting that $31,000 could represent a solid floor price for Bitcoin.
This observation leads to the speculation that Bitcoin may not drop to or below $31,000 again. Furthermore, the analyst notes that the 200WMA is on an upward trajectory, reinforcing the idea that Bitcoin’s value could be poised for sustained growth.
Should You Enter Now?
After the initial sell-off post-ETF decision subsided, Bitcoin found its footing again, rebounding strongly from $38,500. This recovery propelled the digital currency upward by nearly 14%, reaching a high of $43,900. Yet, the emergence of overhead supply pressure has since directed the price into a sideways movement, heralding a phase of consolidation after the rally.
This phase is encapsulated within a pennant pattern on the daily chart, characterized by converging trendlines. At the moment, BTC is priced at $42,957, showing a modest daily decrease of 0.2%. A breakout from the pennant pattern’s resistance could signify the continuation of the recovery rally, creating opportunities for new market entries.
Should this breakout materialize, the trajectory for Bitcoin’s price could see it breaking above the $45,000 threshold, aiming for a target of $48,000 thereafter.
Technical Indicator
- Exponential Moving Average: The coin price trading above the crucial EMAs(20, 50, 100, and 200) the short-term trend turns bullish.
- Relative Strength Index: A daily RSI of above 60% could reflect the recovery trend in action.
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