After the unexpected bearish plot reversal in the past week, Bitcoin price action has been very quiet over the weekend, with BTC barely holding above the $94,000 level. The major digital currency briefly slipped below this price mark on Saturday, January 11, before traveling as high as $94,870.
Interestingly, a leading analyst on the social media platform X has put forward an interesting analysis of the price of Bitcoin, suggesting that the market leader may be at an important level. Could a bullish breakout be on the cards for BTC price or is a deep correction the most likely scenario?
Bitcoin performance in the next few weeks
In a recent post on X, popular crypto analyst Ali Martinez weight in on the way to the price of Bitcoin over the next few weeks. According to the market pundit, the major cryptocurrency is currently set up to see a move higher to $140,000 or a pullback to around $67,000.
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These projections are based on the formation of two patterns, namely the head and shoulders and the bull pen, on the 12-hour BTC price chart. The pennant pattern is characterized by a rising price (the flag pole) followed by a consolidation area with converging trend lines (the pennant), while a head and shoulders formation (as the name suggests proposal) characterized by three distinct price levels, including a higher “head” between two lower “shoulders”.
The creating a pennant card often serves as a bullish continuation pattern, suggesting the continuation of an upward price movement. The head and shoulders pattern, on the other hand, usually indicates a possible bearish reversal, indicating a move from bullish to bearish.
As shown in the chart above, the price of Bitcoin has yet to break below the neck of the head and shoulders pattern, which is often a confirmation of a reversal. If the major digital currency breaks the neck set at around $93,000, its price could drop as low as $67,000.
However, Martinez pointed out that the next target could be higher if the price of Bitcoin keeps above the neck and breaks out of the bull pennant pattern. If this happens, a bullish rise to around $140,000 could be on the cards for the market leader's price. This would represent a collection of almost 50% from the current price level.
Bitcoin Stock Price History
As of this writing, the BTC price stands at around $94,600, indicating no significant change in the past 24 hours. According to CoinGecko data, the leading cryptocurrency is down nearly 4% in the past seven days.
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.Featured image from iStock, chart from TradingView
