Bitcoin has been on a correction path Since it hit a new high of $108 135 on December 17, The leading cryptocurrency has fallen by 10% since the beginning of this year and is still falling. breaking below $93,000 very quickly.
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Bitcoin has retested the Bollinger Bands after this notable drop. Technical analysis indicates a rebound from here, with a target price of around $178,000.
Bitcoin Tests the Monthly Upper Bollinger Band
Bitcoin’s recent price correction Crypto analyst Tony Severino has noticed a critical retest on the upper Bollinger Band monthly. Sharing his insights Severino highlighted the importance of technical indicators on social media platforms X and X. These measures measure market volatility as well as potential reversal levels.
He believes that this pattern is similar to one observed in January of 2024. This led to an eventual substantial rally following a similar test.
The upper Bollinger Band, according to Tony Severino’s daily candlestick chart, is located just over $96,000. This is about Bitcoin’s present price. The Bollinger Band’s retest indicates that Bitcoin may be moving into a new upward phase after recent corrections.
The January 2024 86% rally offers a blueprint
Severino’s analysis draws similarities between Bitcoin’s early behavior in 2024 and current price trends. He pointed out that, in January of 2024 an identical retesting of the Bollinger Band’s upper monthly band preceded Bitcoin’s 86% price rally.
Bitcoin’s price was nearing $46,000 at that point, after a significant rally in late 2023. In January, Bitcoin experienced a short correction. The price dropped to $40,000. This was to test the Bollinger Band. The test was a launching pad for a rally that continued and pushed Bitcoin’s price to its all-time highest in March, surpassing $70,000 for the first ever time.
If Bitcoin was to repeat this 86% increase at this stage, it would soar to about $178,000. Severino said that this is the upper limit of his zone. In another analysisThe analyst said that Bitcoin’s market could peak as soon as 2025.
Bitcoin, at the time this article was written, is currently trading for $96,402, hovering just above the Bollinger Band. The leading cryptocurrency has fallen by 2.11 and 5.4% respectively in the last 24 and 7 days.
It is important to note that this pullback was not a unilateral decision. led to the realization Over $5.72 Billion in Bitcoin Profits has increased the pressure on short-term sales. Bitcoin’s Relative Strength Index is a good indicator of the impact of this corrective action. It has dropped sharply, from 69 in December to 45 at present.
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There are some reasons to think that selling pressure is easing. Since September, the RSI of 43 has acted a support level for Bitcoin. The support level could act as a foundation to help Bitcoin reach $178,000 if it holds.
Chart by TradingView, based on ABC News’ Featured Image
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Source: www.newsbtc.com
