Bitcoin’s $178K Target In Sight? Analyst Highlights Jan. 2024 Rally
Bitcoin Already on the road to correction Since reaching a new all-time high of $108,135 on December 17. Notably, as of this writing, this correction has caused the leading cryptocurrency to fall by approximately 10%, even It soon fell below $93,000.
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This significant decline has allowed Bitcoin to retest the Bollinger Bands, and technical analysis suggests that Bitcoin will rebound from here to reach a price target of around $178,000.
Bitcoin Retests Monthly Bollinger Bands Upper Limit
Bitcoin’s recent price adjustments It caught the attention of crypto analyst Tony Severino, who highlighted a critical retest of the monthly Bollinger Bands upper limit. share his insights Taking to social media platform X, Severino emphasized the importance of this technical indicator, which measures market volatility and potential reversal points.
According to him, this development mirrors a similar pattern observed in January 2024, which culminated in a sharp rebound after a similar retest.
According to the daily candlestick chart shared by Tony Severino, the Bollinger Band upper limit is currently above $96,000, around the current price of Bitcoin. The retest of Bollinger Bands suggests that Bitcoin may be entering a new phase of upward momentum following the recent correction.
Historical Echoes: January 2024 86% Rally Provides Blueprint
Severino’s analysis compared current price action to Bitcoin’s behavior earlier in 2024. He pointed to a similar retest of the monthly Bollinger Bands upper limit in January 2024, before Bitcoin prices rose 86%.
At the time, Bitcoin was trading near $46,000, following strong price gains since late 2023. However, there was a brief correction in January, with Bitcoin prices falling to $40,000, testing the upper Bollinger Bands. This test not only served as a springboard for a sustained rise, but also pushed Bitcoin past its then-all-time highs and above $70,000 for the first time in history in March.
If Bitcoin replicates its 86% gain at this point, it could surge to around $178,000, which Severino noted is consistent with the upper limit of his target area. In another analysisAnalysts predict that Bitcoin could reach a market top as early as January 20, 2025.
As of this writing, Bitcoin is trading at $96,402, still hovering near the upper Bollinger Bands. Interestingly, the currently leading cryptocurrency is down 2.11% and 5.4% in the past 24 hours and 7 days, respectively.
This callback has led to the realization Bitcoin profits exceeded $5.72 billion, adding to short-term selling pressure. The impact of this correction is evident in Bitcoin’s Relative Strength Index (RSI), which has fallen significantly from 69 on December 17 to 45 currently.
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However, there are reasons to believe selling pressure may be easing. This is because the RSI level of 43 has been an important support area for Bitcoin since September. If this support holds, it could set the stage for Bitcoin to head towards $178,000.
Featured image from ABC News, chart from TradingView
