Bitcoin Correction: A Path to $178,000?
Bitcoin has been going through a correction phase after hitting a new all-time high of $108,135 on December 17. The leading cryptocurrency has seen a decline of about 10% and even dropped below $93,000 quickly.
Bitcoin Retests Monthly Upper Bollinger Band
The recent correction in Bitcoin’s price has drawn attention to the retest of the monthly upper Bollinger Band. Crypto analyst Tony Severino highlighted the significance of this technical indicator, which measures market volatility and potential reversal points. According to Severino, a similar pattern was observed in January 2024, leading to a significant rally after a retest.
The upper Bollinger Band is currently around $96,000, aligning with Bitcoin’s current price. This retest suggests a potential upward momentum for Bitcoin after the recent corrections.
Historical Echoes: January 2024 Rally
Severino’s analysis draws parallels between the current price movement and Bitcoin’s behavior in January 2024. Back then, a similar retest of the monthly upper Bollinger Band preceded an 86% rally in Bitcoin’s price.
If Bitcoin replicates this rally, it could potentially reach $178,000, aligning with Severino’s target zone. The analyst also predicts a possible market top by January 20, 2025.
Currently, Bitcoin is trading at $96,402, still near the upper Bollinger Band. The cryptocurrency has experienced a pullback, leading to over $5.72 billion in profits being realized and adding to short-term selling pressure.
Despite the recent decline, there are signs that selling pressure might be easing. The RSI level of 43 has been a significant support zone for Bitcoin since September, indicating a potential move towards $178,000.
Overall, Bitcoin’s correction phase could pave the way for a significant rally towards new price targets, with historical patterns and technical indicators pointing towards a potential uptrend.
Featured image from ABC News, chart from TradingView