Bitcoin Targets $100,000 as Price Breaks Out of ‘Bullish Pennant’

Similar bullish signs emerged as Bitcoin reserves across all cryptocurrency exchanges fell to their lowest level in the past 12 months, suggesting traders are holding on to high sentiment.
The price of Bitcoin (BTC) has broken out of a traditional bullish structure and looks set to make steady progress towards $100,000.
This formation is called a "bullish pennant" and represents a period of price consolidation and converging trend lines that form after a strong move higher. It eventually causes prices to break out in the direction of the prior trend, eventually reaching a level that is often as high as the size of the initial large move.
On the weekly Bitcoin chart, the cryptocurrency appears to have been trading within a similar consolidation structure, with its price moving within a triangle-like structure after a strong move higher.

BTC/USD weekly price chart. Source: TradingView.com

Last week, Bitcoin rallied 13.5%, breaking above the structure’s uptrend line, and volume also rose. Therefore, Bitcoin’s breakout suggests that it has the potential to grow on the scale of its previous trend (near $50,000).
Measured from the breakout point (around $48,200), the upside target for the “bullish pennant” is therefore another $50,000 higher, or nearly $100,000.
Other Predictions After many analysts predicted a six-figure valuation for Bitcoin, technical trends are valuing Bitcoin at $100,000.
A research team led by Geoffrey Kendrick, global head of global emerging market currency research at Standard Chartered Bank, predicts that BTC will reach $100,000 by early next year. They cite Bitcoin’s potential to become “the primary peer-to-peer payment method for the world’s unbanked” as the reason for their bullish forecast.
David Gokhshtein, founder of Gokhshtein Media and PAC Global, also imagines Bitcoin surpassing $100,000 by the end of 2021. The executive’s bullish outlook on Bitcoin is based on the fiat liquidity available in the market, which, according to him, has already prompted major Wall Street players to buy Bitcoin.
"Not everyone will publicly tell you they're buying Bitcoin, but they are," Gokhshtein told Business Insider.
"There's too much money in the market. There's too much money. Institutions are not here to play for five minutes."
His statement came after George Soros’ investment firm revealed at a Bloomberg event that it owns Bitcoin, sending the cryptocurrency’s price soaring, and followed a new report from JPMorgan Chase showing that institutional investors prefer Bitcoin to gold as an inflation hedge.
In an earlier research note published in May, JPMorgan Chase expected Bitcoin to reach $140,000 in the long term.
Holding Sentiment on the Rise The on-chain indicator highlights the rising holding sentiment among Bitcoin traders.
Specifically, according to data provided by blockchain analytics firm CryptoQuant, Bitcoin reserves held by all cryptocurrency exchanges recently fell to their lowest level in a year. The decline illustrates traders’ preference to hold Bitcoin tokens rather than trade them for other fiat/digital assets.

BTC reserves of all exchanges Source: TradingView.com

Therefore, a drop in Bitcoin balances on exchanges is usually accompanied by a rise in Bitcoin prices. (Cointelegraph)