Renowned crypto analyst Tony Severino has drawn attention to a critical technical development in Bitcoin’s market trajectory. Amid the recent price pullback, Severino pointed out a retest of the monthly upper Bollinger Band—a key indicator of market volatility and potential reversals. Sharing his analysis on the social media platform X, Severino compared the current market scenario to January 2024, which witnessed a significant price rally following a similar retest.
According to Severino’s daily candlestick chart, Bitcoin’s current price is hovering near the upper Bollinger Band, slightly above $96,000. This retest suggests that Bitcoin could be regaining strength after its recent decline. Reflecting on historical patterns, Severino noted that Bitcoin experienced an 86% price surge in early 2024 after testing the upper Bollinger Band.
Back in January 2024, following a substantial rise from late 2023, Bitcoin reached $46,000 but briefly dipped below $40,000 to test the upper Bollinger Band. This move sparked a rally, pushing Bitcoin past its previous all-time high and reaching over $70,000 by March.
Severino predicts that if Bitcoin follows a similar trajectory, it could reach $178,000—the upper range of his target zone. Another analyst anticipates Bitcoin may peak on January 20, 2025. Currently priced at $96,402, Bitcoin has declined by 2.11% in the past 24 hours and 5.4% over the last week.
The recent market correction has caused Bitcoin's Relative Strength Index (RSI) to drop significantly, from 69 on December 17 to 45 today. This decline mirrors the $5.72 billion in Bitcoin gains that triggered short-term selling pressure. However, Bitcoin has consistently found RSI support at 43 since September, hinting that this level could act as a springboard for the next rally toward $178,000.
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Disclaimer: This is not financial advice and is shared for educational purposes only.