Bitcoin $178K Target In Sight? Analyst Highlights Bollinger Band Retest Mirroring Jan. 2024 Rally

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As a seasoned crypto investor with a knack for spotting trends and patterns, I’ve seen my fair share of market fluctuations. The recent correction in Bitcoin, while initially disheartening, has caught my attention due to its striking similarities with the rally we witnessed in January 2024.

Bitcoin has been experiencing a downtrend since it hit its record high of $108,135 on December 17th. It’s worth mentioning that this downturn has resulted in Bitcoin losing approximately 10% of its value as of now and even dropping below the $93,000 mark quite swiftly.

The significant drop we’ve witnessed recently has led Bitcoin to test the Bollinger Bands once more. Technical analysis indicates that this could be a potential turning point, leading to an increase towards a projected price of approximately $178,000.

Bitcoin Retests Monthly Upper Bollinger Band

Bitcoin’s recent price drop has attracted the attention of crypto analyst Tony Severino, who pointed out a significant test of the upper limit of the monthly Bollinger Band. On social media platform X, Severino discussed his analysis, stressing the importance of this technical tool that gauges market volatility and potential turning points in price trends.

As he explains, this progression appears to follow a pattern seen back in January 2024, culminating in a significant surge following a similar reassessment.

Based on the daily candlestick chart presented by Tony Severino, the upper limit of the Bollinger Band stands slightly above $96,000, which is roughly equivalent to Bitcoin’s current value. This retest of the Bollinger Band indicates that Bitcoin may be transitioning into a fresh period of bullish trend following recent adjustments, suggesting potential increased upward movement.

Historical Echoes: January 2024’s 86% Rally Offers A Blueprint

Severino’s examination highlights comparable patterns between recent price fluctuations and Bitcoin’s actions earlier in 2024. He pointed out that, much like what happened in January 2024, a retest of the upper monthly Bollinger Band was followed by an impressive 86% surge in Bitcoin’s value.

In December of 2023, Bitcoin was trading around $46,000 due to a robust price surge that had begun at the end of the year. However, the start of January witnessed a temporary dip, causing the value of Bitcoin to drop to $40,000 and touch the upper boundary of the Bollinger Band. This test served as a catalyst for further growth as well as helping Bitcoin surpass its previous record high by reaching over $70,000 for the first time in March.

Should Bitcoin experience a similar 86% surge from its current position, it might climb up to an estimated $178,000, according to Severino’s observations, which falls within the upper boundary of his projected price range. In another assessment, this analyst anticipates that Bitcoin could potentially reach its peak by January 20, 2025.

Currently as I type this, Bitcoin is being exchanged for approximately $96,402. It’s holding close to the upper limit of its Bollinger Band. Notably, Bitcoin has experienced a decrease of 2.11% over the past day and a drop of 5.4% over the last week.

Due to this recent pullback, over $5.72 billion worth of Bitcoin profits have been realized, thereby intensifying the temporary selling frenzy. The effects of this correction are clear in the Relative Strength Index (RSI) chart for Bitcoin, which has plummeted from 69 on December 17 to its current value of 45.

There’s evidence suggesting that the intense selling might be slowing down. This assumption arises from the fact that the Relative Strength Index (RSI) level at 43 has been a strong support area for Bitcoin since September. If this support continues, it could lay the groundwork for Bitcoin potentially reaching $178,000.

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2024-12-23 00:04