The major cryptocurrency is seen around the $5,050 to $5,400 range these past few days, trading at $5,344.09 according to Coinmarketcap data as of press time.
The report noted that traders expecting a bullish outcome will possibly see Bitcoin’s price rise past the $5,500 resistance at the overhead trendline of the pennant to flip the level from resistance to support. The cryptocurrency will then potentially seek a daily higher high above $5,900.
It would also be possible to see a price rejection in the $6,300 to $6,400 region as Bitcoin could make a leg up and can consolidate in this higher range.
Meanwhile, traders expecting a bearish outcome would see Bitcoin’s price decline below the $5,158 support and the pennant to the $4,800 and $4,400 support.
The report added:
Traders issuing calls for the price to drop below $3,000 have likely drawn together a thesis which begins with measuring the entry to the bearish pennant from $6,300 to $3,775 then adding the length of this pullback to the the vertex of the pennant, bringing the post-breakdown price to $2,678.
Blockchian analysis company Chainalysis reported that Bitcoin’s stability is possibly caused by bitcoiners not cashing out the majority of available Bitcoin.
It said that 712,000 Bitcoins that were sent to exchanges, though unprecedented, represented only 5 percent of available Bitcoin.
Chainalysis added that it will continue monitoring the cryptocurrency using traditional indicators, recommending traders to observe the amount of Bitcoin being transferred to exchanges because large increases in exchange flows could lead to increased volatility.