Bitcoin (BTC) has shown the capability of rising toward $75,000 by the end of this year as it breaks out of a classic bullish pattern and picks additional upside cues from its richest investors' recent accumulation spree.
In the last 24 hours, BTC rallied over 6% to reach a three-week bull pennant of $66,500. Through that, the cryptocurrency commenced on a setup remindful of a bull pennant.
Bull Pennants are bullish continuation patterns that appear when an instrument consolidates in a Triangle-like price range following a strong move higher known as Flagpole.
It commonly ends up breaking out of the range to the upside, to hit a profit target at length equal to the Flagpole's size.
When it comes to confirming a bull pennant break out, Bitcoin tricks almost all the boxes. As a result, the possibility of its profit target remaining as high as the height of its flagpole rises, which is over $12,300.
Whales on a BTC buying spree
Bitcoin's bullish trend was confirmed by an on-chain indicator that follows the accumulation activities of the wallets with balances between 10,000 BTC and 100,000 BTC.
There is a clear indication that "Bitcoin whales" have been accelerating their BTC buying spree.
Distinctively, BTC Whales accumulated 43,000 BTC, worth about $2.82 billion, in the last five days and about 92,000 BTC, over $6 billion, in the last 25 days.
An on-chain analyst, Willy Woo, noted that Bitcoin saw an increase in exchanges to cold storage transactions in recent weeks as dollar-pegged stablecoin USDC (USD) also surged.
In a note to his clients, Willy Woo said:
"Price was previously overheated, calling for a time of consolidation, since then we've seen significant buying from investors while [the] price has been sideways… It’s been a healthy consolidation. Meanwhile, significant whale activity has been spotted which suggests BTC’s next move in price may come soon."