Although it seems odd, one researcher believes Bitcoin has a lot more opportunity to deceive bears into a false feeling of security.
After breaching all-time highs, Bitcoin (BTC) may return below $50,000 without violating an overall “bullish thesis,” according to new study.
Decentrader, a crypto trading platform, said in its latest market update on Oct. 22 that there was no reason to be pessimistic on Bitcoin after it touched and retraced from $67,000.
For a $50,000 retest, there is “no meaningful evidence”
Concerns increased after Bitcoin broke an all-time high that had been in place for six months, and a correction occurred that wiped 10% of its gains in a single day.
Despite two drops below $60,000, economists have maintained their bullish outlook for the coming weeks and months. Filbfilb by Decentrader is no exception.
“We’ve been following a Bitcoin fractal pattern for a few weeks now, and if it holds, the next major stop higher for Bitcoin would be $72k if momentum is maintained, after which the 1.618 extensions suggest around $88k would be a target of interest, which ties in with the idea that $100k will see some front running by sellers,” he concluded.
Cooling financing rates, more exposure from Bitcoin futures exchange-traded funds, and robust buyer support, according to him, are all supportive of additional gains.
The weekend, when markets are normally weaker, might offer a surprise move up or down, with an upswing likely encountering resistance above $65,000, the previous high.
Filbfilb also stated that he was prepared for a deeper BTC price drop, but that he would have to work very hard to overcome his optimistic belief.
“$50k will be a key region of interest to us if there is a substantial reversal and break in structure,” he continued.
Although there is no significant evidence of this now, we are prepared for an opportunity, should it present itself. Even if prices do retrace to these levels, it does not break our overall bullish thesis.
The numbers bolster the bulls’ determination
Fibonacci levels, like other recent studies, continue to play an important role in predicting potential future price points in an up-or-down market phase.
Bitcoin’s macrocycle peaks have typically been based on Fib sequences, which means it might surpass $300,000 this time.
Similarly, the next bear market from such highs is expected to bottom out around present levels, with the worst-case scenario falling slightly below $50,000.