Since December 17, Bitcoin has shown a significant decline after reaching a new record high. We analyze the current state and possible future price changes.
Bitcoin Retests Monthly Upper Bollinger Band
Bitcoin's recent correction caught the attention of crypto analyst Tony Severino, who noted the importance of the monthly upper Bollinger Band retest. This technical indicator measures market volatility and potential reversal points. Severino compared this situation with January 2024 in his commentary on platform X.
Historical Echoes: January 2024's Rally
Severino noted that a similar Bollinger Band retest in January 2024 preceded a rally that saw Bitcoin's price increase by 86%. In early January 2024, Bitcoin was trading around $46,000, but after a brief correction, it reached $70,000 by March.
Current Bitcoin Market Situation
At the time of writing, Bitcoin's price is around $96,402, indicating ongoing testing of the upper Bollinger Band. The price decline was accompanied by significant selling affecting the Relative Strength Index (RSI). However, the RSI level 43 has served as an important support zone since September, potentially providing a foundation for further price growth.
The correction of Bitcoin after reaching record highs paves the way for potential growth. Technical indicators and historical parallels suggest the possibility of reaching $178,000.
