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In recent weeks, the price of bitcoin has been on the rise. <a target="_blank" href="https://bitcoinist.com/bitcoin-price-suffers-from-significant-coinbase-selling-activity-largest-since-october-26th/amp/” rel=”nofollow”>downward trendexperiencing significant declines that have pushed it below its all-time high above $104,000. Despite this <a target="_blank" href="https://bitcoinist.com/bitcoin-price-crash-to-96000/amp/” rel=”nofollow”>price dropOne crypto analyst has predicted that bitcoin could recover from this drop and potentially reach a new ATH of $107,000. However, for the pioneering cryptocurrency to recover, it would have to surpass a crucial Fibonacci level.
Why bitcoin Price Could Recover to $107,000
CobraVanguard crypto Analyst<a target="_blank" href="https://www.tradingview.com/chart/BTCUSDT/2ay4oZvg-bitcoin-In-Coming-Days/”> released a graphical analysis on TradingView, illustrating the price movement of bitcoin and potential recovery to $107,000 in the coming days. The analyst's price chart showed that bitcoin was previously in a rising wedge, a technical pattern generally seen as a <a target="_blank" href="https://bitcoinist.com/bitcoin-spot-perpetual-price-gap-turns-negative/amp/” rel=”nofollow”>bearish signal as it indicates the probability of a price drop during an uptrend.
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True to the pattern, bitcoin broke below the <a target="_blank" href="https://bitcoinist.com/bitcoin-rising-wedge-pattern-may-bring-trouble-for-bulls-drop-expected/amp/” rel=”nofollow”>rising wedgewhich makes its price significantly bearish and causes falls. Following this wedge breakout, bitcoin plummeted from over $100,000 to $94,000 in just a few days.
CobraVanguard has noted that the Fibonacci Retracement Levels at 0.618 and 0.382 are marked on the chart, possibly indicating potential resistance and support zones for bitcoin. With bitcoin price plunging after breaking the wedge, it is now consolidating near the 0.382 Fibonacci level between $92,000 and $94,000.
Considering bitcoin's current bearish trendthe 0.382 Fibonacci level can act as support if its price falls again. On the other hand, CobraVanguard has predicted that if bitcoin can surpass the 0.618 Fibonacci level between $98,000 and $100,000, it could signal renewed bullish momentum, which could trigger a price recovery towards a new all-time high of $107,000, marked as the “target” zone on the chart.
Based on the trajectory of the arrow in CobraVanguard's chart analysis, it appears that before bitcoin can reach $107,000, it may face even steeper decline at $90,000. The trajectory suggests a bounce towards $94,000, followed by a drop to $92,000. From there, bitcoin is expected to rise to $100,000, experience another major pullback towards $95,000, and then rise to the analyst's projected ATH of $107,000.
Analyst Predicts More Downsides for bitcoin
Prominent crypto analyst Jelle has expressed bearish sentiment on the outlook for the price of bitcoin towards the end of the year. the analyst<a target="_blank" href="https://x.com/cryptojellenl/status/1871202865554858226?s=46″ rel=”nofollow”> compared Current bitcoin price movements with those of the previous cycle, highlighting similarities in fractals and bearish trends.
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Jelle predicts that bitcoin price could drop down $90,000 this week from its current market value of $94,192. The analyst based this projected price drop on low liquidity, highlighting that holidays like Christmas often lead to less liquidity for digital assets, creating potential downside risks.
However, the analyst predicts that after the short-term decline, bitcoin could resume its bullish momentum in 2025. According to his chart, he projects that the cryptocurrency could reach $190,000 in the second quarter of next year.
Featured image created with Dall.E, chart from Tradingview.com
