Bitcoin's Price Discovery Uptrend Faces Potential Correction
Bitcoin's current price is $117,912.28, with a 0.18% increase in the last 24 hours. The cryptocurrency has been on a six-week uptrend, but analysts warn that a correction might be imminent. Historically, Bitcoin's price discovery uptrends have lasted between five to seven weeks, and the current trend is approaching its seventh week ¹ ².
*Key Factors to Watch:*
- *Price Correction*: A potential correction could see Bitcoin's price drop between 25% to 33%, possibly falling toward $95,000-$100,000 before resuming its upward trend.
- *Support Levels*: $104,400 is a crucial support level for Bitcoin to reclaim in the weekly timeframe.
- *Resistance Levels*: The $108,000 resistance level needs to be turned into support for the fourth time to confirm the uptrend.
- *Future Price Targets*: Analysts predict potential targets ranging from $166,400 to over $200,000, with some predicting a new all-time high in Q4 ³ ⁴ ⁵.
*Market Trends:*
- *Historical Patterns*: Bitcoin's price tends to halt its second uptrend after five to seven weeks, and a new dip now could still allow for fresh all-time highs in Q4.
- *Momentum Indicators*: The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bearish divergences, signaling a potential trend reversal ² ⁵.