Analysts Outline Bitcoin’s Price Trajectory

An analyst known as Ali has illustrated the price patterns of the last two cycles of the leading cryptocurrency and suggested a potential further decline in its value.

Reflecting on the last two bull cycles, $BTC typically retraced to the 50% Fibonacci level after hitting the 78.6% Fib.

Recently, #Bitcoin reached this 78.6% Fib level again, suggesting a potential correction. If this pattern holds true, we could see #BTC drop to $32,700,… pic.twitter.com/AArR9adJbC

— Ali (@ali_charts) January 23, 2024

The expert noted that during previous rallies, Bitcoin followed a scenario where it first reached the 78.6% Fibonacci level and then corrected to 50%.

According to Ali’s observations, in the current cycle, digital gold has already reached the 78.6% level and has begun to decline. Consequently, he does not rule out a drop to $32,700 (50%), according to the model.

Cryptotrader known as Rekt Capital highlighted a pattern before Bitcoin’s halving. In previous cycles, the asset’s price entered a growth zone 60 days before the halving of miner rewards.

#BTC

It’s happening$BTC #Crypto #Bitcoin https://t.co/c1HsYIcuya pic.twitter.com/GLSeOA26te

— Rekt Capital (@rektcapital) January 23, 2024

After the halving, the asset’s prices typically consolidate for several months before resuming positive momentum. According to NiceHash, 81 days remain until the event.

A trader known as Mikeystrades also suggested a drop to $31,000 and advised against opening long positions.

$BTC

Please stop going long cause your favorite CT Twitter guys are!

We aint finished yet we could go as far as $31k!

Save your money till we start showing BULLISH strength and there not following orderflow! https://t.co/SBpk5yTpPJ pic.twitter.com/9SlqYs3cQC

— Mikey S Trades (@mikeystrades) January 23, 2024

“Save your money until the market starts showing bullish strength and follows the order flow,” the expert emphasized.

Founder of MN Trading, Michaël van de Poppe, highlighted that Bitcoin has gathered liquidity and approached a local bottom. Meanwhile, altcoins are “showing strength,” he noted.

#Bitcoin took liquidity and bounces back up. #Altcoins are showing some strength.

We are probably closer to the bottom at this point.

— Michaël van de Poppe (@CryptoMichNL) January 22, 2024

“Buy at the lows. Bitcoin below $40,000 is an opportunity,” added the analyst.

At the time of writing, the leading cryptocurrency is trading at $38,663. According to CoinGecko, the coin’s market capitalization stands at $758 billion, with a daily trading volume of $28 billion.

Earlier, Bitfinex pointed to risks of Bitcoin falling further to $36,000 due to pressure from speculators. According to the company, bearish sentiments currently dominate the market.

As reported by CoinDesk, shares of GBTC worth $908 million were sold from the bankruptcy estate of FTX, potentially exerting pressure on the price of the leading cryptocurrency.