Bitcoin’s 60-day cycle points to a likely drop near the $100K level before a rebound starts.
A quick move below $100K would confirm a cycle low and set the stage for renewed buying interest.
Traders are watching closely as this mini capitulation event could mark a strong entry point soon.
Bitcoin is currently in a critical phase, with its 60-day cycle approaching a potential low point. According to analyst Bob Loukas, the market may soon experience a "mini capitulation" event. This event could mark the completion of the current daily (60-day) cycle and set up an ideal buying opportunity. The analysis highlights that a swift drop below the $100,000 level would establish this low and trigger a buying signal.
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The market has seen Bitcoin hover around $104,324, slightly down by 1.31%, reflecting cautious sentiment among traders. The analyst suggests this typical cycle behavior involves a final flush lower before the bullish phase resumes. This pattern indicates a potentially healthy pullback within the larger upward trend. Traders and investors are watching closely to see if Bitcoin will follow this predicted path.
Understanding the 60-Day Cycle and Market Movements
The 60-day cycle is a significant timeframe in Bitcoin price action analysis. It marks recurring phases of accumulation, price rises, and pullbacks. According to Loukas, a clean cycle completes with one last downward move, often called the "mini capitulation." This phase flushes out weaker holders, paving the way for renewed strength.
The chart shared in Loukas’s tweet shows a clear downward arrow marking day 45 of the cycle, followed by a forecasted dip to around day 60. This visual suggests the price could fall into the $100,000 support zone before rebounding strongly. The box area on the chart indicates the predicted low zone where buyers are likely to enter.
Moreover, the quick move below $100,000 is considered a crucial threshold. It represents a psychological and technical support level. If the price holds above this zone after dipping, it confirms the cycle’s bottom and signals a potential upward move. This dynamic suggests Bitcoin could continue its bullish trend after this corrective phase.
Market Implications and Trader Perspectives
This cycle analysis impacts short-term traders and long-term holders differently. For traders, recognizing the mini capitulation as a buying window is vital. It offers a chance to enter at lower prices before a rally. Loukas emphasizes that nobody should remain sidelined during this stage, as it is essential for strategy development.
Meanwhile, long-term investors might see this phase as routine volatility. The pattern reinforces that dips are part of Bitcoin’s price behavior within cycles. The $100,000 level serves as a benchmark for accumulation during such phases. The market’s reaction to this level will influence broader sentiment.
