As a researcher with over a decade of experience in the crypto market, I have witnessed numerous ups and downs, bull runs, and bear markets. The latest Bitcoin price reversal was yet another rollercoaster ride that tested the resolve of even the most seasoned investors.
The price of Bitcoin dropped approximately 9%, or roughly $9,000, following its near reach of the $100,000 mark. However, it seems that this decline might have ended, and Bitcoin enthusiasts are once again gaining momentum. Could this rally push Bitcoin to a new record high?
The recent drop in price happened over four days and managed to trim over $9,000 from the peak. With Bitcoin approaching the $100,000 mark, it might require multiple attempts before it finally surpasses this level. Moreover, expect significant price fluctuations along the way.
Long term holders selling or technical indications responsible for dip?
With Bitcoin resuming its upward climb, there’s a lot of chatter on social media pointing fingers at long-term Bitcoin holders for causing this recent reversal. While it’s possible they played a role, technical analysis suggests that a correction was overdue. If these long-term investors were unloading their coins during this peak, it might help explain why the price of BTC dropped as significantly as it did.
On the 8-hour chart, Bitcoin (BTC) exhibited a drop from its peak, which fell just shy of $100,000. The fact that the price dipped down to the most significant Fibonacci retracement level at approximately 78.6% suggests a substantial correction. This decline seems to be a necessary adjustment, likely welcomed by the market.
Additionally, the 50 Simple Moving Average (represented by the blue line) provided a foundation, while it was also noteworthy that all the momentums on the short-term timelines had reached their lowest points and were now moving upward again.
Bullish on the monthly time frame
Looking at a broader monthly perspective, Bitcoin appears to be quite optimistic. However, its price hasn’t managed to reach the 1.618 Fibonacci level yet, which might prove challenging for bulls due to it aligning with an ascending trendline from the peak of the last bull market.
As you move along the graph, you’ll notice that the Stochastic RSI has a crossover where the faster line (blue) goes over the slower line (red). This pattern suggests a positive price trend that might continue for several months ahead. Additionally, at the lower part of the chart, the Relative Strength Index shows the indicator line breaking above the downward trendline that began in 2021. This is another sign pointing towards a potential bullish movement.
It’s possible that the price of $100,000 might be rejected again in the future, but considering the first half of 2025 and the maturing bull market, reaching the price level predicted by the 2.618 Fibonacci sequence (approximately $155,000) is a plausible scenario.
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2024-11-27 15:11