The recent plummet in Bitcoin’s value below the $60,000 mark has sparked widespread speculation within the crypto community, raising questions among investors and market watchers about the future direction of its price. Marco Johanning, a well-known crypto analyst and founder of The Summit Club, took to X (formerly Twitter) to provide his insights on the current market conditions and what might be expected next.
According to Johanning, the recent price action does not signify a market downturn but rather a correction within an ongoing bull market. He emphasizes, “Bitcoin lost the range. What now? First and foremost, a reminder: we are in a bull market, and this is a correction. This is not a rally in a bear market. Or in other words, the high time frame trend is up no matter what.”
He supported this assertion with several indicators of a continued bullish trend. First, Bitcoin reached its bear market bottom in November 2022 and subsequently broke above the 200-day moving average, a critical indicator of long-term market trends. Following a drop below the 200-day moving average, there was a significant breakout above this level and THE major high time frame resistance in October 2023.
Moreover, Bitcoin achieved a new all-time high in March 2024. Over the last 18 months, Bitcoin has consistently recorded higher highs and higher lows, which are typical characteristics of a bullish market.
“This can’t be a bear market,” Johanning explained. “These elements underscore a fundamental bias crucial for assuming that the current drop is part of a broader bull market trend. Therefore, Bitcoin will eventually find a local bottom and ascend higher.”
Bitcoin Price Analysis: What To Expect Next?
Johanning provided a detailed breakdown of possible future scenarios based on technical analysis. His first scenario is based on the monthly chart where the most crucial level is at $48,000-$49,000. This level is key because it was a major hurdle overcome in February 2024. Now, it might serve as the perfect point for a bullish retest.
Furthermore, there’s a significant market imbalance down to the $48,000-$49,000 range, coinciding with the 0.5 Fibonacci retracement level from the last monthly swing low. This setup suggests a strong potential for price stabilization and reversal at this level, according to Johanning.
The second scenario grounds on the weekly chart where the important level is at…
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