Bitcoin’s price has taken a bit of a dip after hitting a new high of $108,135 on December 17th. It’s down about 10%, even briefly dropping below $93,000. But could this be a buying opportunity?
Bollinger Band Bounce: A Technical Look
Crypto analyst Tony Severino thinks so. He’s noticed Bitcoin retesting the upper Bollinger Band – a technical indicator showing market volatility and potential turning points. This, he says, mirrors a pattern seen in January 2024, which led to a significant price surge.
The upper Bollinger Band is currently around $96,000, close to Bitcoin’s current price. Severino believes this retest suggests Bitcoin might be ready to rally again.
History Repeating Itself? The January 2024 Rally
Severino points to January 2024 as a precedent. After a brief correction, Bitcoin bounced off the upper Bollinger Band (then around $40,000) and went on an 86% rally. If history repeats, Bitcoin could reach approximately $178,000 – a price within Severino’s predicted target range. He even predicts a market top as early as January 20, 2025.
Current Market Conditions: A Closer Look
Currently, Bitcoin is trading around $96,402, down slightly in the last 24 hours and 7 days. This dip has resulted in some profit-taking, adding to short-term selling pressure. Bitcoin’s Relative Strength Index (RSI) has also dropped, but it’s holding above a key support level (around 43) that has been significant since September. If this support holds, it could fuel a move towards that $178,000 target.
