Amid widespread bullish sentiment around bitcoin, an X analyst think the advantage will not be as strong as in recent weeks. Pointing to the evolution of bitcoin's logarithmic curves, the analyst expects the coin to encounter resistance as it attempts to rise higher.
The analyst doubts the current enthusiasm around the bullish trend and the technical formations advise a contrary view. Many in the industry think that bitcoin will not only surpass $70,000, a round number that was almost tested this week, but will also float to $100,000 in the coming weeks.
At X, the analyst remains confident in the currency's prospects. However, based on bitcoin's log curve analysis, upside is likely to be difficult. The analyst compares the current price formations with bitcoin's logarithmic curves. In 2021, the tool was used to identify price spikes.
Based on the price formation, the analyst notes that if btc peaks in 2024, then prices will likely swing between $77,000 and $149,000. The upper and lower bands of these possible peaks represent layers 5 and 7 of the logarithmic curve.
Even with the possibility of btc rising to $149,000, at least from the tool, the Layer 7 target is relatively lower. Taking into account a one-year growth slowdown, the forecast peak is revised downward from $180,000 to $149,000.
As of writing, the “red band” of the logarithmic curve has been surpassed earlier than usual. Looking back, bitcoin prices tend to peak three months after this breakout.
That likely puts bitcoin's peak at around the $77,000 level, but below $100,000. However, this is difficult to predict, considering the volatile nature of prices and the dynamic nature of fundamental factors.
The community remains optimistic about what lies ahead. So far, bitcoin prices have trended towards all-time highs, but there has been a sharp drop in bullish momentum.
The daily chart shows that prices are still within the bearish bar from March 5. The candle had high trading volume and was wide-ranging. For the uptrend to be valid, prices must exceed $70,000, depending on the increase in trading volume.
<img loading="lazy" decoding="async" class="size-full wp-image-596933" src="https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-bullish-momentum-likely-to-fall-further-analyst.png" alt="bitcoin Fear and Greed Index | Source: Coinstats” width=”849″ height=”330″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-bullish-momentum-likely-to-fall-further-analyst.png?w=849 849w, https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-bullish-momentum-likely-to-fall-further-analyst.png?w=460 460w, https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-bullish-momentum-likely-to-fall-further-analyst.png?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-bullish-momentum-likely-to-fall-further-analyst.png?w=750 750w” sizes=”(max-width: 849px) 100vw, 849px” data-recalc-dims=”1″/>bitcoin Fear and Greed Index | Source: Coinstats
Lower prices incentivize issuers to target bitcoin exchange-traded funds (ETFs) to take advantage of dips. Its actions have stimulated demand in recent weeks, lifting confidence and prices. According to Coinstats Fear and Greed IndexThere is “extreme greed” in the market.
Featured image of DALLE, TradingView chart
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