On Thursday, Bitcoin underwent a slight push to the $87,000 threshold as the entire crypto market gained traction following key news and developments in the sector. After the brief surge, the flagship seems to be losing steam. BTC’s price may have dropped, but many analysts foresee a bullish reversal toward new heights.
Next Leg-Up For Bitcoin Eyes New Targets
Bitcoin’s price has started to decline again after experiencing a slight rebound. The asset faced strong resistance at the $87,000 mark, which caused it to retrace rapidly to the $83,000 support range.
Despite losing its upward momentum, Mags, a crypto analyst and trader has outlined indicators that point to a bullish upswing in the short term. Mags predicts BTC could be on the verge of a major rally, provided it maintains stability at a crucial support area.
According to the market expert, this support could serve as a springboard for an upsurge to a new all-time high for BTC. The expert considers the upcoming rally an opportunity for those who missed Bitcoin’s previous dips to $25,000 and $52,000.
Navigating Bitcoin’s performance in this bull run, Mags highlighted that level 45 of the weekly Relative Strength Index (RSI), which represents the last two local bottoms, has been a solid support area. Meanwhile, this level might also act as a solid support against recent downswings.
The initial test occurred when the flagship asset hit a low of $25,000. However, a significant rally of over 193% followed, bringing BTC’s value to the previous high of $73,100. In the second scenario, BTC marked a low of $52,000. After that, it saw a 107% price increase to its current all-time high of $109,400.
Presently, the asset has witnessed its third test as it plummeted to a low of $76,000. Thus Mags believes that past trends might repeat, fueling a leg-up to new higher levels in the upcoming weeks.
Should the level 45 weekly RSI hold and merely head back to the declining trendline, the expert anticipates a 64% upswing from the area. Looking at the chart, this move would bring BTC to a value of $128,000, which aligns with the 1.618 Fibonacci extension level.
BTC Market Moves Into Extreme Fear
With the market moving sideways, the Bitcoin Fear and Greed Index has plunged into the Extreme Fear zone again, reflecting anxiety among investors. This change implies that traders are growing more wary as Bitcoin fails to hold on to crucial levels.
While it may seem worrisome, Mags noted that extreme fear has preceded a strong bounce in BTC each time it reaches the zone. He further mentioned that the indicator last fell to Extreme Fear when Bitcoin was valued at $54,000 in September 2024.Â
Meanwhile, prices rose by over 102% the last time. Given the index dropping to extreme fear, Mags believes that BTC could witness a price reversal in the short term.
