It has been revealed the fact that the current rally of Bitcoin has an interesting trajectory. Check out the latest reports about this below.
Bitcoin price trajectory
According to a popular crypto analyst, Bitcoin’s recent surge could be followed by a pullback if it reaches a certain level.
Benjamin Cowen, a crypto analyst with a following of 788,000 on YouTube, suggests that Bitcoin may experience a dip if it reaches the $48,000 level.
Cowen uses Fibonacci retracement levels, a technical analysis method that helps determine an asset’s support and resistance areas, to make his prediction.
“We can always look just in the context of history to see how far this one went [from December 2017]. If you look at the retracement tool, and you can see over here [in the middle of 2019] what essentially happened is that we had weekly closes around the 0.50 Fibonacci retracement with wicks up to around the 0.618.”
The analyst continued and said the following:
“If you take it from here [in November 2021], you can see that the 0.50 [Fibonacci level] is around $42,000. The 0.618 [Fibonacci level] is all the way up at $48,000. So that gives you an idea of where it would have to go if it were going to emulate what we saw over here [in the middle of 2019].
The other way to look at this, of course, is to say what if you measure it from this peak [in April 2021] instead of the second peak in [November 2021]. Then that would put the 0.50 [Fibonacci level] where we currently are and then the 0.618 [Fibonacci level] would be at around $46,000.”
He also made sure to explain the fact that a move to the downside could cause Bitcoin to retest the $31,000 level based on historical price action.
“We sort of just covered some of those levels. And of course, there’s also this level down here, which is the prior breakout point, which is something that historically gets tested eventually although sometimes it can take months before it gets tested but that’s all the way back down at $31,000.”
The analyst also made sure to predict a surge in price volatility in the weeks ahead.
