Bitcoin's Potential Surge to $175K Followed by a Potential 80% Collapse
In the ever-evolving world of cryptocurrency, a new forecast by EGRAG CRYPTO and InvestingHaven suggests that Bitcoin could reach a peak of around $175,000 before a major correction sets in. This potential peak is based on EGRAG's market model, which also predicts a possible 70-80% decline during the next bear market.
If Bitcoin were to reach this lofty height and experience the predicted pullback, it could fall into the range of $35,000 to $52,000. This forecast, however, should be taken with a grain of salt, as the exact timing and short-term path for Bitcoin remain uncertain.
It's important to note that Bitcoin has historically seen significant corrections after each bull market cycle, with an average drawdown of around 85%. This pattern is reflected in the current market, where traders are bracing for increased volatility in the days ahead, particularly due to the expiry of approximately $4.9 trillion worth of stock and ETF options today. This figure is more than 1.2 times the total crypto market cap, which could bring sharp volatility across both crypto and equities markets.
Interestingly, a potential inverse head-and-shoulders formation has been observed on Bitcoin's 4-hour chart. This pattern, if confirmed, could indicate a potential rally if the price breaks above the $117,950 neckline, with a possible target of around $130,000. Key resistance levels to watch in case of a rally are $121,000, $125,000, and $127,000.
Previous expiries this year have been followed by clear market reactions. For instance, Bitcoin dropped by about 17% after the March 2021 expiry and fell below $100,000 shortly after the June expiry. However, the timing for these corrections and the peak has varied, making it difficult to predict the exact timeline for the current forecast.
At the time of writing, Bitcoin was trading at around $116,800, with a slight 24-hour drop and a 7-day gain of 1%. The trading volume over the last day stood at $36.7 billion.
While the forecast of a potential $175,000 peak and subsequent correction is intriguing, it's essential to approach such predictions with caution. The person who made the forecast is not explicitly named in the available search results, but InvestingHaven has projected a stretched Bitcoin target of $175,000 to $185,000 for 2025, indicating a strong bullish potential before possible retracements.
As always, it's crucial to do thorough research and consider multiple perspectives before making investment decisions.
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