Bitcoin’s recent drop below $60,000 has caused widespread speculation in the crypto-community, and raised questions about its future price. Marco Johanning is a well known crypto analyst, founder of The Summit Club and took to X, formerly Twitter, to give his opinion. insights Current market conditions and future expectations next.
Johanning says that recent price movements are not indicative of a downward trend in the markets, but rather corrections within an ongoing upward trend. bull market. He emphasizes, “Bitcoin lost the range. What now? First and foremost, a reminder: we are in a bull market, and this is a correction. This is not a rally in a bear market. Or in other words, the high time frame trend is up no matter what.”
This assertion was supported by several indicators that indicated a continuing bullish trend. Bitcoin’s price reached its bear market bottom The 200-day average was broken in November 2022. It is an important indicator of the long-term trend. In October 2023, after a decline below the moving 200-day average, there has been a major breakout over this level. This is THE high timeframe resistance.
Bitcoin reached an all-time record in March of 2024. Bitcoin’s highs and lows have consistently increased over the past 18 months. This is a sign of a bullish stock market.
“This can’t be a bear market,” Johanning explained. “These elements underscore a fundamental bias crucial for assuming that the current drop is part of a broader bull market trend. Therefore, Bitcoin will eventually find a local bottom and ascend higher.”
Bitcoin price Analysis: What Next?
Johanning provided an in-depth breakdown of future scenarios using technical analysis. The first scenario he presents is based upon the monthly chart, where the crucial levels are $48,000 to $49,000. It is important to note that this level was an obstacle which had been overcome by February 2024. This level could serve as a perfect starting point for an upward retest.
There’s also a large market imbalance between the range of $48,000 to $499,000, coincident with the Fibonacci Retracement Level 0.5 from the monthly swing-low. Johanning believes that this setup indicates a high potential for price stability and reversal.
Second scenario: The important level on the chart is $52,000. This is the major high timeframe support/resistance level, which corresponds to a weekly balance that reaches $52,000. The 0.382 Fibonacci Retracement between the bottom and top of the most recent major rally as well as the 0.618 Fibonacci Retracement level from the swing low up to the highest point.
Third scenario: The lower time frames are used. In this case, $57,000 is the key level. This level is important as it marks the Fibonacci ratio of 0.5 from the swing low. It was also a critical area in the rise that took place during February. This level could serve as a stage for potential price deviations or traps.
“The recent bearish engulfing pattern breaking the monthly levels, followed by a bearish retest, signals significant market shifts,” noted Johanning. “If Bitcoin swiftly reclaims these key levels, particularly the $57,000 mark, we could see a deviation scenario unfold. Otherwise, the $52,000 or $48,000-$49,000 levels will likely be tested, each representing a higher low in the ongoing uptrend.”
Market Strategy and Altcoins: Impact
Altcoins Johanning believes that Bitcoin has shown remarkable resilience against the volatility of Bitcoin. “Usually, a significant drop in Bitcoin accompanied by a loss of a higher time frame range would lead to severe declines in altcoins. However, their strength yesterday is a good indicator that the worst may be over for altcoins,” He commented.
Johanning ended his analysis by expressing optimism for Bitcoin and altcoins. He expressed confidence in the continued bull market. The investor is actively adding to his current holdings, as he anticipates substantial gains. “No matter which scenario plays out, I am committed to this trend until proven otherwise. I’m investing heavily, and if we truly remain in a bull market, the potential for profit is tremendous.”
BTC was trading at $58,328 as of the time this article went to press.
Featured image created with DALL·E, chart from TradingView.com
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