Caleb Franzen, senior market analyst and strategist at Cubic Analytics has taken to Twitter to share his take on the direction where Bitcoin may be moving. He believes that the price of the flagship cryptocurrency is heading down in the direction of the $14,000 and might drop even lower.
“A target of $11.4k to $13.9k” for Bitcoin
Franzen, who used to work as an analyst in the banking sphere and then switched into crypto analysis, shared a Bitcoin chart, where he highlighted an area based on the previous BTC lows, where he reckons Bitcoin is currently heading.
It serves as “a magnet for Bitcoin”, he tweeted, adding that this implies a target of $11.400 to $13.900 for the leading digital currency.
I still think that the teal box is a magnet for #Bitcoin, implying a target of $11.4k to $13.9k. pic.twitter.com/5V8wFgX759— Caleb Franzen (@CalebFranzen) December 23, 2022
He explained that this target was the level where Bitcoin price closed in December 2017, which was the peak of that cycle. Besides, the same level acted as resistance in 2019, exactly at the $13,900 level. This makes him confident that BTC is likely to reach that target. However, it admits that it just could happen and is not a definite forecast.
I get reassurance about this target because it was the monthly close from December 2017, the peak of the former cycle.— Caleb Franzen (@CalebFranzen) December 23, 2022
This level also acted as resistance in 2019, perfectly at $13.9k.
Will it absolutely fall to this level? No.
Could it. Yes.
Same target I've shared since June pic.twitter.com/ymLssZzAqY
Bitcoin still under selling pressure
The flagship cryptocurrency has been trading in the range of $16,800 since December 14. On that day, the US Fed Reserve announced another rate hike, this time by 50 basis points, which matched the expectations of analysts.
The Fed also announced that it is determined to continue taking rates high next year, which would keep pushing stocks and cryptocurrency down. Bitcoin fell from the $18,244 high on that day and is now trading at $16,848, according to data shared by CoinMarketCap.
Chief commodity strategist of Bloomberg Intelligence Mike McGlone believes that Bitcoin is ready to “resume outperforming” other assets, once the Fed reverses to monetary easing and stops rate hikes, as reported by U.Today earlier.