In recent weeks, Bitcoin has experienced a notable downturn, with its price slipping below its historic peak of over $104,000. Despite this downward spiral, some crypto analysts maintain an optimistic view, predicting that Bitcoin could rebound and potentially hit a new all-time high (ATH) of $107,000. However, this recovery hinges on Bitcoin surpassing a critical Fibonacci level.
Why Bitcoin Might Bounce Back to $107,000
Crypto analyst CobraVanguard has shared an insightful chart analysis on TradingView, projecting a possible recovery trajectory for Bitcoin to reach $107,000 in the near future. The chart reflected Bitcoin’s previous pattern within a rising wedge—a technical configuration typically signaling bearish trends, as it often leads to price declines during an uptrend.
Consistent with this pattern, Bitcoin’s price broke beneath the rising wedge, resulting in significant bearish momentum and a steep decline from over $100,000 to $94,000 within days. CobraVanguard highlighted the Fibonacci retracement levels at 0.618 and 0.382 on the chart, which suggest potential resistance and support zones for Bitcoin. Currently, Bitcoin is consolidating near the 0.382 Fibonacci level, between $92,000 and $94,000.
This Fibonacci level might act as a support if Bitcoin’s price slips again. Conversely, CobraVanguard believes that if Bitcoin manages to climb above the 0.618 Fibonacci level, situated between $98,000 and $100,000, it could spark renewed bullish momentum. This shift could propel Bitcoin towards a new ATH of $107,000, identified as the “target” zone on the chart.
Path to Recovery and Potential Challenges
According to the trajectory outlined in CobraVanguard’s analysis, Bitcoin might initially face a more profound decline to $90,000 before aiming for the $107,000 mark. The path suggests a rebound to $94,000, a dip to $92,000, followed by a climb to $100,000. After experiencing another significant pullback to $95,000, Bitcoin could finally surge to the projected ATH of $107,000.
Further Downside Predicted for Bitcoin
Another respected crypto analyst, Jelle, has echoed a bearish outlook for Bitcoin’s price as the year draws to a close. Jelle compared the current price movements of Bitcoin with patterns from previous cycles, noting similar fractals and bearish trends.
Jelle forecasts that Bitcoin’s price may dip below $90,000 this week, descending from its current market value of $94,192. The analyst attributes this potential decline to diminished liquidity, a common occurrence during festive holidays like Christmas, which often results in reduced trading volumes for digital assets and increased downside risks.
Long-Term Projections and Future Outlook
Despite the short-term bearish outlook, Jelle anticipates that Bitcoin could regain upward momentum by 2025. Based on his analysis, he predicts that Bitcoin could soar to as high as $190,000 by the second quarter of next year.
As Bitcoin continues to struggle at the $94,000 mark, market observers remain vigilant, analyzing charts and patterns for clues about the cryptocurrency’s next moves. With each passing day, the digital asset market presents new challenges and opportunities for investors and traders alike.
