After an unexpected bearish plot twist in the past week, Bitcoin’s price action has been relatively subdued over the weekend, with BTC barely maintaining a level above $94,000. The premier cryptocurrency experienced a momentary dip below this threshold on Saturday, January 11, before recovering to as high as $94,870.
Interestingly, a top analyst on the social media platform X has posited a compelling analysis regarding Bitcoin’s trajectory, indicating that the market leader could be at a significant juncture. This raises the question: will there be a bullish breakout for BTC, or is a deep correction the more probable scenario?
Bitcoin’s Performance In The Next Few Weeks
In a recent post on X, noted crypto analyst Ali Martinez offered insights into the potential direction of Bitcoin’s price over the upcoming weeks. According to Martinez, Bitcoin appears poised for either an upswing to $140,000 or a retracement to approximately $67,000.
These forecasts are grounded in the identification of two technical patterns on the BTC 12-hour price chart: the head-and-shoulders pattern and the bull pennant. The pennant pattern is characterized by a preceding price upswing (the flagpole), followed by a consolidation phase demarcated by converging trend lines (the pennant). Conversely, the head-and-shoulders formation typically highlights three distinct price peaks, with the central peak, or “head,” being higher than the two “shoulders.”
The pennant chart formation often indicates a continuation of bullish momentum, thus supporting the prevailing upward trend. On the other hand, a head-and-shoulders pattern commonly points to a possible bearish reversal, suggesting a transition from an uptrend to a downtrend.
The chart illustrates that Bitcoin has yet to breach the neckline of the head-and-shoulders pattern, which typically confirms a trend reversal when violated. Should the cryptocurrency fall below the neckline around $93,000, the price could potentially drop to as low as $67,000.
Conversely, Martinez noted that if Bitcoin maintains its position above the neckline and succeeds in breaking out of the bull pennant pattern, a bullish surge toward $140,000 could be within reach. This scenario would signify an impressive nearly 50% rally from the current price level.
Bitcoin Price At A Glance
As of this writing, the price of BTC hovers around $94,600, reflecting minimal changes over the past 24 hours. According to CoinGecko data, Bitcoin has experienced nearly a 4% decline over the last week.
.Featured image from iStock, chart from TradingView
