Crypto giant Bitcoin may have witnessed significant volatility, causing its price to drop as low as $91,000 after reaching a new all-time high. However, a crypto analyst believes that BTC’s bull run has not yet reached its peak, suggesting an impending move toward new highs and a market top.
Market Top For Bitcoin Above The $200,000 level
Bitcoin is struggling to reclaim key resistance levels after a pullback. Despite the sharp correction and market fluctuation, Mags, a seasoned market expert and trader outlines that BTC’s bull market cycle remains strong in the long term.
The expert shared his perspective on BTC’s market dynamics as speculations about the asset reaching its peak for this cycle. Bitcoin’s overall trend is still upward even though major support levels have been tested by short-term retracements, which is an encouraging sign for another breakthrough in the upcoming months.
Mags’ analysis is based on critical Fibonacci extensions that have historically signaled a rally and a potential market peak. It is worth noting that Fibonacci extensions play a vital role in determining the next possible resistance levels.
Heightened volatility may have hindered upside momentum, but Mags expects BTC to enter a price recovery in the short term. Once the flagship asset enters price recovery, the expert has highlighted 3 distinct key Fibonacci extension levels in its bullish journey such as 1.618, 2.618, and 3.618.
Considering past cycle trends, these Fibonacci extension levels could help gauge BTC’s next rally and identify its market top for the ongoing cycle. As seen in the previous bull cycle, Btcoin reached its top at the 3.618 Fibonacci extension before going into a bear market.
Meanwhile, BTC is being rejected at the 1.618 fib extension level in the current cycle, marking the first key resistance in its rally toward new highs. Strong support and a breakout above this level are expected to bolster further uptrends to other fib extension points.
When this happens, Bitcoin will surge to the next extension of 2.618, which is located close to $154,522, before moving forward to the last extension of 3.618 at around $207,701. Mags urges investors to keep an eye on these levels when the price shifts toward a positive direction again.
Is It The Right Time To Buy BTC?
Amid heightened volatility, market expert and trader Daan Crypto Trades, using key indicators have identified the the ideal time to purchase or sell BTC.
Using the Bitcoin 2-Year MA Multiplier tool, the expert highlighted that when the price is trading below the 2-Year MA, it has historically been an interesting time to purchase BTC. Meanwhile, when prices exceed the 2-Year MA 5, it typically implies that BTC has overextended and may be nearing a peak.
Currently, Bitcoin’s price is in the middle of the 2-Year MA and the 2-Year MA 5. According to the expert, this is not the right point to make long-term purchases. However, it is also not quite as overextended as in past cycles.
Featured image from Unsplash, chart from Tradingview.com
