In a recent analysis on Crypto Banter, market analyst Kyledoops discussed the upper boundary of the trend channel about Bitcoin’s price. The analyst correctly identified the trend and suggested that breaking through this boundary could lead to a rally of $65,000. However, he also explained the importance of understanding chart patterns within market cycles, highlighting previous instances when Bitcoin approached similar resistance levels.
He mentioned that if we consider the timing cycle alongside the previous occurrence when Bitcoin reached the upper boundary of the parallel channel, it had been 1,200 days since Bitcoin broke out of that channel. This historical context explains the importance of this level. During that time, prices also experienced a trend continuation, with the moving average backtesting the low region at 50% as support, along with the 200-day moving average on the weekly timeframe.
This suggests the potential for a major move. While zooming in on the daily timeframe, there’s also the possibility of an altcoin rally. Even though there’s a potential local top, any minor pullbacks for Bitcoin dominance within this region could lead to brief downturns.
He recommended using the Fibonacci Retracement tool on the daily timeframe to track potential pullback levels, which are currently estimated at around $44,000 to $45,000. Despite signs of market momentum, extreme greed hasn’t been reached yet, indicating potential for further upward movement without immediate selling pressure.
The next full moon is expected on February 24th, which could coincide with a potential buying opportunity if there’s a pullback in the market. Bitcoin’s price remains above key technical levels, but around $48,000 can signal a pullback, signaling a trend reversal.
At the time of writing, Bitcoin is trading at $51,030, down by more than two percent.
Source: https://coinpedia.org/price-analysis/critical-levels-unveiled-bitcoins-48000-danger-zone-is-a-reversal-looming/