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The bullish analogy appears as Bitcoin reserves across all crypto exchanges fall to their lowest level in the previous 12 months, indicating traders’ holding sentiment.
As its price breaks out of a classic bullish structure, Bitcoin (BTC) appears poised to pursue a run-up towards $100,000.
The setup, known as a Bull Pennant, represents a price consolidation period with converging trendlines that form following a strong move higher. It eventually causes the price to break out in the direction of its previous trend to a level that is typically as much as the size of the initial large move higher.
On Bitcoin weekly charts, the cryptocurrency appeared to have been trending inside a similar consolidation structure, with its price fluctuating inside a Triangle-like structure following a strong move higher (Flagpole).
Bitcoin broke through the structure’s upper trendline last week, rising 13.5 percent with rising trading volumes. As a result, the cryptocurrency’s breakout move indicated that it has the potential to rise by the same amount as its previous trend (nearly $50,000).
Measuring from the point of breakout ($48,200), the Bull Pennant’s upside target is thus $50,000 higher, i.e., nearly $100,000.
The technical setup projected Bitcoin at $100,000 no longer after many analysts envisioned the cryptocurrency at the same, six-digital valuation.
Geoffrey Kendrick, Standard Chartered’s global head of emerging market currency research, predicted that Bitcoin would reach $100,000 by early next year. They based their bullish prediction on Bitcoin’s potential to become “the dominant peer-to-peer payment method for the global unbanked.”
David Gokhshtein, the founder of Gokhshtein Media and PAC Global, predicted that Bitcoin would reach $100,000 by the end of 2021. The executive’s bullish outlook is based on the amount of available fiat liquidity in the market, which has prompted leading Wall Street players to purchase Bitcoin, according to him.
“Not everybody’s going to come out publicly and tell you that they’re buying bitcoin, but they are,” Gokhshtein told Business Insider.
“There’s too much money in the market. Way too much money. Institutions did not come in here to play for five minutes.”
His comments came after George Soros’ investment firm revealed at a Bloomberg event that it owns Bitcoin, causing the cryptocurrency to skyrocket in value. This was quickly followed by JPMorgan Chase’s latest report, which revealed institutional investors’ preference for Bitcoin over gold as an inflation hedge.
In a previous study published in May, the banking giant predicted that Bitcoin would reach $140,000 in the long run.
Holding sentiment on rise
On-chain indicators highlighted a rise in holding sentiment among Bitcoin traders.
In detail, the Bitcoin reserves held across all crypto exchanges recently dropped to their lowest levels in a year, as per data provided by blockchain analytics firm CryptoQuant. The decline illustrated traders’ intention to hold their Bitcoin tokens close than trading them for other fiat/digital assets.
Therefore, declining Bitcoin balances on exchanges typically follow up with rise in the BTC price.