Emily Walker
The cryptocurrency powerhouse Bitcoin has faced notable price fluctuations, dipping to $91,000 from a fresh all-time high. Yet, a crypto analyst is confident that Bitcoin’s bullish momentum is not finished, hinting at a potential surge towards new heights and an eventual market climax.
Potential Bitcoin Market Peak Above $200,000
Bitcoin is currently attempting to regain essential resistance levels following a recent decline. Even with this sharp downturn and market instability, Mags, a recognized market analyst and trader suggests thatBTC’s long-term bullish trajectory remains intact.
The analyst shared insights on Bitcoin’s market situation amid speculation regarding whether it has reached its cycle peak. Despite recent tests of significant support levels through short-term declines, Bitcoin’s overall trend continues upward, indicating a possibility for further advancements in the months to come.
Mags’ evaluation utilizes critical Fibonacci extensions, historically tied to market rallies and potential peaks. These Fibonacci levels are vital for predicting upcoming resistance points.
While increased volatility has slowed upward movement, Mags is optimistic about BTC entering a recovery phase soon. During this recovery, the analyst has pinpointed three significant Fibonacci extension levels: 1.618, 2.618, and 3.618.
Looking back at previous cycles, these Fibonacci extensions could provide a roadmap for BTC’s next rally and help determine the peak for this cycle. In earlier bull markets, Bitcoin reached its apex at the 3.618 extension before transitioning into a bear market.
Currently, Bitcoin is facing resistance at the 1.618 Fibonacci extension in this cycle, marking an initial barrier in its path to new peaks. A solid support level and a breakout above this point are anticipated to facilitate further gains toward subsequent Fibonacci levels.
Following this breakout, Bitcoin could rise to the next extension at 2.618, near $154,522, before reaching the final extension of 3.618 around $207,701. Mags encourages investors to monitor these levels closely as the price begins its upward trend again.
Is Now the Right Moment to Invest in BTC?
In light of the current volatility, market analyst Daan Crypto Trades has utilized key indicators to evaluate optimal moments for acquiring or selling BTC.
Applying the Bitcoin 2-Year MA Multiplier tool, Daan notes that historically, when Bitcoin trades below the 2-Year MA, it signifies a promising buying opportunity. Conversely, when it surpasses the 2-Year MA 5, it often indicates that BTC is overvalued and may be approaching a peak.
Currently, Bitcoin’s price fluctuates between the 2-Year MA and the 2-Year MA 5. The analyst indicates this is not an ideal time for long-term investments, yet it’s also not as overextended compared to earlier cycles.