On Thursday, Bitcoin made a slight advance toward the $87,000 level as the broader crypto market gained momentum following significant news and developments. Following this brief spike, the leading cryptocurrency appears to be losing its momentum. While BTC’s price has seen a decline, numerous analysts are optimistic about a potential bullish reversal that could lead to new all-time highs.
Next Upward Move for Bitcoin Targets New Heights
After a short rebound, Bitcoin’s price has begun to fall again. The asset encountered significant resistance at the $87,000 level, prompting a swift retracement back to the $83,000 support range.
Despite the recent loss of upward energy, Mags, a noted crypto analyst and trader, has identified several indicators suggesting a potential bullish movement in the near term. Mags anticipates that BTC might be on the brink of a substantial rally, contingent upon its stability at a vital support level.
According to this expert, the current support level may act as a catalyst for a surge towards a new all-time high for BTC. This upcoming rally presents a valuable opportunity for those who missed the chance to buy Bitcoin at previous lows of $25,000 and $52,000.
In analyzing Bitcoin’s performance during this bullish trend, Mags pointed out that the 45 level on the weekly Relative Strength Index (RSI), which reflects the last two local lows, has established itself as a robust support area. Importantly, this level may also provide a buffer against recent declines.
The first test occurred when the flagship asset dipped to a low of $25,000. This was followed by a remarkable rally of over 193%, which drove BTC’s price back up to its prior high of $73,100. In a subsequent scenario, BTC recorded a low of $52,000, leading to a 107% price increase that culminated in its latest all-time high of $109,400.
Currently, the asset is undergoing its third test after dropping to a low of $76,000. Thus, Mags predicts that previous trends could repeat, propelling Bitcoin to new higher levels in the coming weeks.
If the 45 level on the weekly RSI holds and merely retracts back to the declining trendline, the expert forecasts a potential upswing of 64% from this area. Based on the chart, such a move would elevate BTC’s price to around $128,000, aligning with the 1.618 Fibonacci extension level.
BTC Market Experiences Extreme Fear
As the market remains stagnant, the Bitcoin Fear and Greed Index has once again dropped into the Extreme Fear territory, signaling heightened anxiety among investors. This shift indicates that traders are becoming increasingly cautious as Bitcoin struggles to maintain critical levels.
Though this may appear alarming, Mags has pointed out that extreme fear has historically preceded a strong rebound in BTC every time it enters this zone. He also mentioned that the index last fell to Extreme Fear while Bitcoin was priced at $54,000 in September 2024.
During that time, prices surged by over 102%. Given the current drop into extreme fear, Mags is optimistic that BTC might experience a price reversal shortly.
Featured image from Unsplash, chart from Tradingview.com
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