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After an unexpected bearish plot twist this past week, Bitcoin’s price action was quite quiet this past weekend, with BTC barely holding above the $94,000 level. The leading cryptocurrency briefly fell below this price line on Saturday, January 11, before rising as high as $94,870.
Interestingly, a top analyst on social media platform Could a bullish breakout be in store for BTC’s price, or is a deep correction the most likely scenario?
Bitcoin’s performance in the coming weeks
In a recent post on X, popular crypto analyst Ali Martinez said weighed about the trajectory of the Bitcoin price in the coming weeks. According to the market expert, the flagship cryptocurrency is currently set up in such a way that it could see a rise 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 pennant, on BTC’s 12-hour price chart. The pennant pattern is characterized by a price rise (the flagpole), followed by a consolidation range with converging trend lines (the pennant), while the head-and-shoulders formation (as the name suggests) is characterized by three distinct price highs, including a higher ‘ head’ between two lower ‘shoulders’.
The pennant chart formation often acts as a bullish continuation pattern, indicating the continuation of an upward price trend. The head and shoulders pattern, on the other hand, usually indicates a potential bearish reversal, which signals a shift from an uptrend to a downtrend.
As seen in the chart above, Bitcoin price has yet to break below the neckline of the head-and-shoulders pattern, which often serves as confirmation for the trend reversal. If the leading cryptocurrency breaks the neckline at around $93,000, the price could drop to $67,000.
However, Martinez pointed out that the next target could be higher if Bitcoin price stays above the neckline and breaks the bull pennant pattern. If this happens, a bullish rise to around $140,000 could be in store for the market leader’s price. This would represent a rally of almost 50% from the current price.
Bitcoin price at a glance
At the time of writing, the price of BTC stands at around $94,600, reflecting no significant change in the past 24 hours. According to CoinGecko data, the leading cryptocurrency has fallen by almost 4% over the past seven days.
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.Featured image from iStock, chart from TradingView