In recent weeks, the price of Bitcoin has been on a downward trend, experiencing significant declines and falling below the historical high of $104,000. Despite the price crash, a cryptocurrency analyst predicts that Bitcoin may recover from this drop and potentially reach a new high of $107,000. However, for the leading cryptocurrency to achieve this recovery, it must break through key Fibonacci levels.
Why Bitcoin's price may rebound to $107,000
Cryptocurrency analyst CobraVanguard posted a chart analysis on TradingView, illustrating Bitcoin's price trend and the possibility of rebounding to $107,000 in the coming days. The analyst's price chart shows that Bitcoin was previously in a rising wedge, a technical pattern that is often seen as a bearish signal, indicating a potential decline in price during an uptrend.
As the pattern suggests, Bitcoin fell below the rising wedge, making its price distinctly bearish and triggering a decline. After breaking the wedge, Bitcoin plummeted from over $100,000 to $94,000 in just a few days.
CobraVanguard pointed out that the Fibonacci retracement levels of 0.618 and 0.382 are marked on the chart, which may indicate potential resistance and support zones for Bitcoin. As the price of Bitcoin plummeted after breaking the wedge, it is currently consolidating near the 0.382 Fibonacci level between $92,000 and $94,000.
Considering the current bear market trend for Bitcoin, if its price drops again, the 0.382 Fibonacci level may serve as a support level. On the other hand, CobraVanguard predicts that if Bitcoin can break through the 0.618 Fibonacci level between $98,000 and $100,000, it may indicate the re-emergence of bullish momentum, potentially triggering a price rebound to the historical high of $107,000, which is the 'target' area on the chart.
According to the trajectory of the arrows in CobraVanguard's chart analysis, Bitcoin may face a larger decline to $90,000 before reaching $107,000. This trajectory suggests a rebound to $94,000, followed by a drop to $92,000. From there, Bitcoin is expected to climb to $100,000, experience another significant pullback to $95,000, and then surge to the predicted high of $107,000.
Analyst predicts further decline for Bitcoin
Well-known cryptocurrency analyst Jelle expressed pessimism about the year-end price outlook for Bitcoin. The analyst compared Bitcoin's current price trend to the previous cycle's price trend, emphasizing the similarities in fractals and bearish trends.
Jelle predicts that Bitcoin's price may drop from the current $94,192 to below $90,000 this week. The analyst forecasted this price drop based on low liquidity and emphasized that holiday periods like Christmas typically lead to decreased liquidity for digital assets, resulting in potential downside risks.
Nevertheless, the analyst predicts that after a short-term pullback, Bitcoin may regain upward momentum in 2025. According to his chart, he expects the cryptocurrency to surge to $190,000 in the second quarter of next year.
