Bitcoin (BTC), the largest cryptocurrency in the market, has encountered a significant downturn following the waning hype around exchange-traded funds (ETFs), resulting in a 9% decline over the past fourteen days.
However, Glassnode co-founders remain optimistic, asserting that the recent price corrections align with historical patterns and could propel Bitcoin to new heights, nearly doubling its current all-time high (ATH) of $69,000.
Healthy Market Correction?
In their latest analysis, the co-founders of the blockchain analytics firm posted on X (formerly Twitter), highlighting Bitcoin’s movement to the 6.618 Fibonacci Extension after a Bull Flag Correction.
They draw parallels between the current correction and similar market conditions observed in late 2017 and 2020. The question arises: Will history repeat itself in 2024, and will Bitcoin reach its 6.618 Fibonacci Extension during this bullish market, setting a target of approximately $120K?
Examining the chart above, the analysis by the Glassnode co-founders reveals a comparable price correction following Bitcoin’s breakout above the $10,000 price level, which initiated the bull trend that propelled the cryptocurrency to a $15,000 increase before reaching its current ATH of $69,000.
Likewise, Bitcoin exhibited a similar bull flag pattern after surpassing the $29,000 price level, leading to a 22-month high of $48,900 on January 11. Notably, this surge occurred shortly after the approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC).
Considering these developments, the key to Bitcoin’s future trajectory lies in maintaining support around the $40,000 level and further consolidation above it. If these conditions are met in the coming months, Bitcoin has the potential to reach the 6.618 Fibonacci extension, pushing its price as high as $120,000.
New All-Time Highs Expected For Bitcoin
Like Glassnode co-founder’s recent price analysis, crypto analyst Crypto Con also relies on historical patterns to gauge the future price action of BTC. According to Crypto Con, the mid-top of this Bitcoin price cycle occurred slightly faster than previous cycles but slower than the third cycle.
Notably, this mid-top represents the only instance where it occurred outside of an early top, as indicated by the purple and yellow dots on the chart provided by the analyst.
Despite the 2019 mid-top occurring a year earlier than expected, the cycle top still manifested within the usual timeframe, plus or minus 21 days from November 28th, 2021.
Crypto Con stresses that there is currently no evidence apart from complex theories to support the notion of an accelerated cycle. The analyst cautions against assuming that ETFs prevent potential Bitcoin price corrections.
After November 28th, 2024, Crypto Con predicts the emergence of new all-time highs for the Bitcoin price of $90,000 or $130,000 and significant growth for the cryptocurrency market.
At the time of writing, BTC is trading at $40,590, down 2.5% in the past 24 hours. If this level is breached, Bitcoin could drop towards the $37,650 level as it is the next major support for the cryptocurrency.
Featured image from Shutterstock, chart from TradingView.com
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