On Thursday, Bitcoin underwent a slight push to the $87,000 threshold as the complete crypto market gained traction following key news and developments within the sector. After the transient surge, the flagship appears to be losing steam. BTC’s price could have dropped, but many analysts foresee a bullish reversal toward latest heights.
Next Leg-Up For Bitcoin Eyes Recent Targets
Bitcoin’s price has began to say no again after experiencing a slight rebound. The asset faced strong resistance on the $87,000 mark, which caused it to retrace rapidly to the $83,000 support range.
Despite losing its upward momentum, Mags, a crypto analyst and trader has outlined indicators that time to a bullish upswing within the short term. Mags predicts BTC might be on the verge of a significant rally, provided it maintains stability at a vital support area.
In response to the market expert, this support could function a springboard for an upsurge to a latest all-time high for BTC. The expert considers the upcoming rally an opportunity for many who missed Bitcoin’s previous dips to $25,000 and $52,000.
Navigating Bitcoin’s performance on this bull run, Mags highlighted that level 45 of the weekly Relative Strength Index (RSI), which represents the last two local bottoms, has been a solid support area. Meanwhile, this level may also act as a solid support against recent downswings.
The initial test occurred when the flagship asset hit a low of $25,000. Nevertheless, a major rally of over 193% followed, bringing BTC’s value to the previous high of $73,100. Within the second scenario, BTC marked a low of $52,000. After that, it saw a 107% price increase to its current all-time high of $109,400.
Presently, the asset has witnessed its third test because it plummeted to a low of $76,000. Thus Mags believes that past trends might repeat, fueling a leg-up to latest higher levels within the upcoming weeks.
Should the extent 45 weekly RSI hold and merely head back to the declining trendline, the expert anticipates a 64% upswing from the world. the chart, this move would bring BTC to a price of $128,000, which aligns with the 1.618 Fibonacci extension level.
BTC Market Moves Into Extreme Fear
With the market moving sideways, the Bitcoin Fear and Greed Index has plunged into the Extreme Fear zone again, reflecting anxiety amongst investors. This alteration implies that traders are growing more wary as Bitcoin fails to carry on to crucial levels.
While it could appear worrisome, Mags noted that extreme fear has preceded a powerful bounce in BTC every time it reaches the zone. He further mentioned that the indicator last fell to Extreme Fear when Bitcoin was valued at $54,000 in September 2024.
Meanwhile, prices rose by over 102% the last time. Given the index dropping to extreme fear, Mags believes that BTC could witness a price reversal within the short term.
Featured image from Unsplash, chart from Tradingview.com
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