Bitcoin Price Analysis: Veteran Analyst Outlines Two Scenarios Where BTC Reaching $290k
The post Bitcoin Price Analysis: Veteran Analyst Outlines Two Scenarios Where BTC Reaching $290k appeared first on Coinpedia Fintech News
Bitcoin’s value dropped by almost $7,000, falling from over $67,700 to around $60,760. This sudden plunge left investors and analysts puzzled. The Crypto Fear and Greed Index, which measures market sentiment, dropped from 60 to 49 in just 13 days, moving from Greed to almost Neutral.
Despite the uncertainty, many analysts think this could be Bitcoin’s lowest point before a new upward trend. Technical analyst Gert van Lagen has outlined two possible scenarios for a potential Bitcoin price increase.
Scenario 1: The Bullish Case
Van Lagen’s first scenario presents an optimistic outlook for Bitcoin. He believes that the recent correction, known as the fourth wave, may have come to an end.
This scenario is supported by the formation of a head and shoulders pattern, a bullish continuation signal that could indicate a potential reversal.
For this bullish scenario to remain valid, Bitcoin must stay above the critical level of $56.5k. If it does, van Lagen predicts that Bitcoin could surge to around $250k.
Scenario 2: The Bearish Outlook
However, van Lagen also outlines a more cautious scenario. In this scenario, he suggests that the fourth wave correction is not yet over. He points to the potential formation of a double-top pattern, which is typically a bearish signal indicating that the price might face further declines.
If Bitcoin falls below the $56.5k level, this scenario becomes more likely, suggesting that the cryptocurrency could continue to correct before possibly reaching $290k in the longer term.
Importance of Key Levels
The key takeaway from van Lagen’s analysis is the importance of the $56.5k level. This threshold serves as a pivotal point in determining which scenario will play out. Staying above this level supports the bullish outlook, potentially leading to a significant price surge, while falling below it suggests further downside in the near term.
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