Bitcoin’s $178,000 Target in Sight? Analyst Highlights January 2024 Rally

Bitcoin has been on a path of correction since hitting a brand new all-time excessive of $108,135 on December 17. Notably, this correction has brought about the main cryptocurrency to fall by round 10% to the time of writing and even falling beneath $93,000 in a short time.

Associated studying

This notable decline has led Bitcoin to retest the Bollinger Bands, and technical evaluation suggests an upswing from right here to achieve a value goal of round $178,000.

Bitcoin retests the month-to-month higher Bollinger band

Bitcoins recent price correction has caught the eye of crypto analyst Tony Severino, who highlighted a vital retest of the month-to-month Higher Bollinger Band. Sharing his insights on social media platform

In keeping with him, this growth mirrors an identical sample noticed in January 2024, which finally led to a considerable rally after an identical retest.

In keeping with the each day candlestick chart shared by Tony Severino, the higher Bollinger Band is at present simply above $96,000, which is round Bitcoin’s present value. This retest of the Bollinger Band means that Bitcoin may very well be coming into a brand new section of upside momentum after the latest corrections.

Historic echoes: January 2024’s 86% rally gives a blueprint

Severino’s evaluation attracts parallels between the present value motion and Bitcoin’s conduct earlier in 2024. He famous that in January 2024, an identical retest of the month-to-month higher Bollinger Band preceded an 86% rally in Bitcoin’s value.

On the time, Bitcoin was buying and selling round $46,000, following a robust value improve that emerged from late 2023. Nonetheless, a short correction occurred in January, with Bitcoin’s value falling to $40,000 to check the higher Bollinger Band. This check not solely acted as a springboard for a sustained rally, but in addition brought about Bitcoin to interrupt its then all-time excessive, surpassing $70,000 for the primary time in its historical past in March.

If Bitcoin have been to repeat this 86% rally at this level, it might rise to round $178,000, which Severino mentioned aligns with the higher restrict of his goal zone. In another analysisthe analyst predicted that Bitcoin might attain its market high as early as January 20, 2025.

On the time of writing, Bitcoin is buying and selling at $96,402, nonetheless hovering across the higher Bollinger Band. Curiously, the key cryptocurrency is at present down 2.11% and 5.4% previously 24 hours and 7 days, respectively.

This withdrawal has led to its realization of over $5.72 billion in Bitcoin positive factors, which has contributed to the short-term promoting strain. The affect of this correction is clearly seen in Bitcoin’s Relative Energy Index (RSI), which has fallen sharply from 69 on December 17 to the present studying of 45.

Associated studying

Nonetheless, there are causes to imagine that promoting strain could also be easing. It is because the RSI stage of 43 has been appearing as a key help zone for Bitcoin since September. If this help holds, it might present the premise for Bitcoin’s value in the direction of $178,000.

Featured picture from ABC Information, chart from TradingView