Christopher Inks, a seasoned trader, has his eye on Bitcoin's next move.
In his post on the X social media network, Inks predicts that Bitcoin could be gearing up for a rally, with a focus on the approximately 70.5% retracement level.
Investors and enthusiasts are watching closely as Bitcoin's dance around this crucial market threshold could set the tone for its near-term trajectory.
A technical view
The chart shared by Inks offers a visual representation of Bitcoin's price movements, featuring a series of Fibonacci retracement levels — a popular tool among traders for identifying potential reversal points on charts based on past movements.
The highlighted area around the 70.5% level is particularly intriguing since it aligns with a substantial volume of traded Bitcoin. This might indicate possible support.
With the price hovering near this level, traders speculate whether it will serve as a springboard for the cryptocurrency's value or if further consolidation is on the horizon.
Optimism and caution
On the flip side of this bullish prediction is a sobering perspective from CryptoQuant analysts who warn that the approval of a spot bitcoin ETF could trigger a "sell the news" event. This could possibly send Bitcoin down to a low of $32,000.
This cautionary stance is supported by historical patterns of price corrections following periods of high unrealized profits for Bitcoin holders, particularly when the digital asset has surged past significant milestones (like the recent $40,000 mark).
Market corrections are not uncommon and are often part of the ebb and flow of trading cycles.
Denys Serhiichuk
Tomiwabold Olajide
Godfrey Benjamin
