As a seasoned analyst with over two decades of experience in traditional and digital markets under my belt, I find myself intrigued by the recent developments in Bitcoin‘s price action. The current downtrend has been a common occurrence in various market cycles, and Bitcoin seems to be no exception.
For about three weeks now, the price of Bitcoin has been steadily falling, dropping below its previous all-time high of $104,000. This sharp decline has left some investors concerned. However, one crypto analyst believes that Bitcoin may bounce back from this dip and possibly reach a new record high of $107,000. But for this to happen, it needs to surpass a crucial Fibonacci resistance level.
Why The Bitcoin Price Could Rebound To $107,000
Crypto analyst CobraVanguard released a chart analysis on TradingView, illustrating Bitcoin’s price movement and potential recovery to $107,000 in the coming days. The analyst’s price chart showed that Bitcoin was previously in a rising wedge, a technical pattern generally viewed as a bearish signal as it indicates the likelihood of a price decline during an uptrend.
According to the usual trend, Bitcoin dipped below its upward pattern, causing a steep drop in price and making it significantly bearish. After this wedge breakout, Bitcoin quickly fell from around $100,000 to $94,000 over just a few days.
CobraVanguard has pointed out that the Fibonacci retracement levels, specifically at 0.618 and 0.382, are highlighted on the Bitcoin chart. These levels might serve as potential areas of resistance and support, respectively. As Bitcoin’s price plummeted following the breakout from the wedge, it is now experiencing a period of consolidation around the 0.382 Fibonacci level, which falls between $92,000 and $94,000.
Looking at Bitcoin’s current downward trend, the 0.382 Fibonacci level could serve as a potential support point if the price drops further. Conversely, CobraVanguard foresees that if Bitcoin manages to surpass the 0.618 Fibonacci level, which lies between $98,000 and $100,000, it might signal a resurgence of bullish sentiment, possibly leading to a price rally aiming for a new peak at $107,000 – this area is marked as the “target” zone on the chart.
According to CobraVanguard’s chart analysis, Bitcoin might encounter a more pronounced drop to around $90,000 before potentially reaching $107,000. The analysis predicts a recovery to roughly $94,000, followed by a small dip to $92,000. Subsequently, the price is expected to rise to $100,000, then face another significant pullback towards $95,000, and finally reach the projected all-time high (ATH) at $107,000.
Analyst Predicts More Downside For Bitcoin
Noted cryptocurrency expert Jelle recently voiced a pessimistic view regarding Bitcoin’s price forecast for the remainder of this year. He drew parallels between the present market fluctuations and those seen during the last cycle, emphasizing shared patterns and downward tendencies.
Jelle anticipates a possible decrease in Bitcoin’s price, dipping below the current market value of $94,192, within this week. This forecast is grounded on reduced liquidity, as the analyst points out that seasonal festivities such as Christmas can lead to lower liquidity in digital assets, potentially increasing the risk of downward price movements.
Despite a temporary dip in the near future, the analyst predicts that Bitcoin will regain its growth trajectory in 2025. Looking at his chart, he anticipates that the digital currency could reach as much as $190,000 by Q2 of the next year.
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2024-12-24 23:46