Is Bitcoin Headed For A Breakout As It Trades Near All-Time Highs?

Is Bitcoin Headed For A Breakout As It Trades Near All-Time Highs?

Bitcoin prices have been fluctuating close to record levels today, coming less than 1% from the all-time high achieved late last month.

The world’s most prominent digital currency reached $66,530.58 today, CoinDesk data shows.

At this point, it would need to gain roughly 0.67% to attain the record price of $66,974.77 it hit on October 20, additional CoinDesk figures show.

After rising to more than $66,500 today, bitcoin pulled back slightly, and it was trading close to $65,000 at the time of this writing.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Bitcoin’s Bullish Pendant

Earlier today, a Cointelegraph article looked at the cryptocurrency’s recent price movements, providing some technical analysis.

The Cointelegraph piece stated that while bitcoin had been trading within a relatively well-defined range, it rallied, gaining 6% in the space of 24 hours, at which point it “broke out of a consolidation range consisting of two diverging trendlines, a setup reminiscent of a Bull Pennant.”

“Bull Pennants are bullish continuation patterns that appear when an instrument consolidates in a Triangle-like price range following a strong move higher (called Flagpole),” the article continued.

“It typically ends up breaking out of the range to the upside, eyeing a profit target at length equal to the Flagpole's size.”

“Bitcoin ticks almost all the boxes when it comes to confirming a Bull Pennant breakout,” the article’s author stated.

Several technical analysts weighed in on this claim.

“Bitcoin has indeed formed the structure of a bull pennant and is currently rising towards new all-highs,” said Sean Rooney, head of research at Valkyrie Investments.

“If the current bull pennant plays out according to traditional technical analysis, BTC will likely make a run at $70,000 in the near term.”

Jake Wujastyk, chief market analyst of TrendSpider, also weighed in.

“Bullish pennants are generally strong continuation patterns,” he stated.

“The price needs to close above the pennant resistance for the move to be validated though,” added Wujastyk.

The market analyst offered some further insight on the situation.

“As bitcoin attempts to break new all-time highs, a break and close above this $67k level would be extremely bullish for continuation up to the $87k level above which is the 1.618 extension from the April to July measured move.”

Greg Waisman, co-founder and COO of the global payment network Mercuryo, also chimed in.

“The Bitcoin bull pennant assessment is obvious as depicted by the on-chain market chart, however, market dynamics, which can introduce a bearish trend at any point can always be introduced at any time,” he stated.

“Barring any of such occurrences, several indicators still point to the fact that the ongoing bull run is not ready to take a breather just yet.” said Waisman.

“The MACD indicator as seen on TradingView is currently at the brink of a breakout, further validating the Bull Pennant thesis for continued price runup in BTC. Additionally, the Relative Strength Index is currently pegged at 65.10, down from the ‘Overbought’ region of at least 70,” he emphasized.

“This data shows that while the upsurge in the price of Bitcoin is visible, there is still more room to go, with the likelihood that the digital currency may end the year at a price of about $80,000.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.