$BTC

Bitcoin is testing a key technical level, the monthly upper Bollinger Band, according to crypto expert Tony Severino. This band tracks market volatility and helps predict potential price reversals. Severino pointed out that Bitcoin's price is currently near $96,000, right at the upper Bollinger Band, which signals that Bitcoin might be regaining strength after recent losses.

Severino compared this situation to January 2024, when Bitcoin's price fell slightly below $40,000 but quickly bounced back after testing the upper Bollinger Band. This led to a major rally that saw Bitcoin's price soar by 86%, eventually surpassing its previous all-time high of $70,000 in March 2024.

If Bitcoin follows a similar pattern, Severino believes its price could rise to $178,000, the high end of his target range. Bitcoin's Relative Strength Index (RSI), which measures market momentum, recently dropped from 69 on December 17 to 45, showing some selling pressure. However, the RSI has found support around 43 since September, suggesting that the selling pressure may be easing. If this continues, Bitcoin could see a rise to $178,000.