Bitcoin is at a pivotal moment and crypto analyst Caleb Franzen is closely monitoring the situation. He recently examined a critical chart tracking Bitcoin’s performance since late 2022, with a focus on the 200-day moving average. In a discussion with Thinking Crypto, Franzen expressed concern over Bitcoin’s recent dip below these long-term averages. Typically, in a bull market, Bitcoin’s price remains above these significant levels.
Franzen observed that dropping below these averages could suggest Bitcoin might be entering a bearish phase. However, he remains calm, noting that similar declines occurred in August and June, with Bitcoin recovering swiftly each time.
Potential Future Movements
Franzen likened Bitcoin’s potential recovery to a simple analogy, suggesting that once Bitcoin reclaims the moving average cloud, it might experience a strong upward movement. He cautioned that the initial attempt to surpass these levels might not be immediately successful, based on historical trends.
He stated, “Bull markets are marked by prices staying above key short-term, medium-term, and long-term moving averages. So, if we’re falling below these long-term moving averages, it’s not a bullish sign; it likely indicates a bearish phase.”
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Looking Ahead: Price Expectations
Franzen also discussed the impact of Bitcoin’s temporary dips below short-term moving averages. He highlighted that such dips are typical in bull markets and are often followed by a swift rebound. Bitcoin has consistently shown resilience, quickly recovering and continuing its upward trajectory despite challenges.
On a broader scale, Franzen believes Bitcoin could potentially reach $175,000 within this market cycle, based on the Fibonacci extension method. He has consistently held this target and anticipates that if Bitcoin reaches this level, other major cryptocurrencies like Ethereum and Solana could also experience substantial gains.
Cre: coinpedia
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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