The leading cryptocurrency, Bitcoin (BTC), has experienced a notable decrease in value amid diminishing enthusiasm for exchange-traded funds (ETFs), leading to a 9% drop in the last two weeks.
Despite this downturn, the co-founders of Glassnode maintain a positive outlook, stating that the recent corrections in price are in line with historical trends. They believe these corrections could potentially drive Bitcoin to achieve new heights, approaching double its current all-time high (ATH) of $69,000.
Is This a Positive Adjustment in the Market?
In their most recent analysis, the co-founders of the blockchain analytics firm shared on X (formerly Twitter), emphasized Bitcoin’s shift towards the 6.618 Fibonacci Extension following a correction indicated by a Bull Flag.
They make comparisons between the ongoing correction and market scenarios witnessed in late 2017 and 2020. The query emerges: Will historical patterns repeat in 2024, propelling Bitcoin to its 6.618 Fibonacci Extension in this bullish market, with a target of around $120,000?
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Analyzing the chart provided, the examination conducted by Glassnode’s co-founders unveils a comparable price correction subsequent to Bitcoin’s breakthrough beyond the $10,000 mark. This breakthrough marked the beginning of a bullish trend that propelled the cryptocurrency to a $15,000 surge, culminating in its current all-time high (ATH) of $69,000.
Similarly, Bitcoin displayed a reminiscent bull flag pattern after surpassing the $29,000 threshold, resulting in a 22-month peak of $48,900 on January 11. Notably, this upswing occurred shortly after the U.S. Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs.
Given these developments, the pivotal factor influencing Bitcoin’s future trajectory lies in maintaining support around the $40,000 level and consolidating above it. Meeting these conditions in the upcoming months could potentially enable Bitcoin to attain the 6.618 Fibonacci extension, propelling its price to as high as $120,000.
Anticipated: Bitcoin Poised for Record-Breaking Highs
Similar to the recent price analysis by a Glassnode co-founder, crypto analyst Crypto Con also uses historical patterns as a basis for assessing the future price movement of BTC. According to Crypto Con, the mid-top of this Bitcoin price cycle occurred slightly more quickly than in previous cycles but at a slower pace compared to the third cycle.
Significantly, this mid-top is noteworthy as it is the only instance where it happened outside of an early top, as denoted by the purple and yellow dots on the analyst’s provided chart.
Despite the 2019 mid-top occurring a year earlier than anticipated, the cycle top still materialized within the usual timeframe, with a margin of plus or minus 21 days from November 28th, 2021.
Crypto Con emphasizes that, aside from intricate theories, there is currently no empirical evidence supporting the idea of an accelerated cycle. The analyst advises against presuming that the existence of ETFs prevents potential corrections in Bitcoin’s price.
In a prognostication following November 28th, 2024, Crypto Con foresees the emergence of new all-time highs for Bitcoin, ranging between $90,000 and $130,000, accompanied by substantial growth in the cryptocurrency market.
As of the current writing, BTC is trading at $40,590, reflecting a 2.5% decrease over the past 24 hours. A breach of this level could lead Bitcoin towards the $37,650 mark, representing the next significant support for the cryptocurrency.