Bitcoin’s recent price drop has left some gaps that could predict its next move. A crypto analyst, TehThomas, suggests a wild ride is ahead.
Two Key Gaps to Fill
According to TehThomas, two “Fair Value Gaps” (FVGs) need to be filled before Bitcoin can really take off. These gaps represent areas where the price hasn’t traded, creating imbalances.
The first FVG is above $117,000. TehThomas thinks Bitcoin will likely hit this level first. This could trigger stop-loss orders (selling orders triggered when the price falls below a certain level) and trap some investors who bought expecting a breakout.
But this upward movement might be short-lived. The second FVG sits just above $111,000, well below recent lows. TehThomas expects a pullback from the $117,000 level down to this second FVG.
This dip, surprisingly, is considered bullish. It would clear another area of imbalance and create a clean chart, setting the stage for a significant price increase.
The Road to $120,000
After both FVGs are filled, the next hurdle is a descending trendline. A bounce off the upper part of this trendline, followed by a drop back down, would confirm the next upward move.
With both FVGs filled and the trendline cleared, Bitcoin would be poised for a serious rally, potentially reaching the $120,000 mark. This would involve hitting previous resistance levels. TehThomas emphasizes that both FVGs need to be addressed before a sustained price increase is likely.
