💲Where will the price of bitcoin go? Let's break it down.
If we take the highest closing candle and the lowest closing candle before a breakout as the starting point of fibonacci level, we can see bitcoin is currently struggling at fibonacci extension level 2 for over two weeks. It is also at the psychology number $100.000. Sure, it broke above that number because the greed index was very high at that point. I think that also caused the price to liquidate over 1 billion dollars after bitcoin wicked to 90k few days ago.
Historically, Bitcoin broke its previous all-time high of 73k after mitigating the fair value gap. This was confirmed by a large green candle closing above that level in November. Note that this large candle has a strong potential for forming a new fair value gap.
Today, F&G Index is not relatively in high greed level, means that it increases the chance of price to hit above the current level at $100.000.
Based on the information above, here's a brief summary for the monthly timeframe:
We are awaiting this month's candle close. If it fails to close significantly above the previous candle's high or if it closes as a red candle signaling rejection, it is highly likely that the fair value gap will be mitigated first before price moves above that level. If the candle closes above that level, we could see new levels potentially around $128k and $150k.