On Thursday, Bitcoin experienced a minor push to the $87,000 threshold, as the entire crypto market gained momentum following significant news and developments in the sector. However, after this brief surge, the flagship cryptocurrency appears to be losing momentum. While BTC’s price may have dipped, many analysts are forecasting a potential bullish reversal toward new heights.
Bitcoin’s price has recently started to decline after a slight rebound. The cryptocurrency faced strong resistance at the $87,000 mark, which resulted in a rapid retracement to the $83,000 support range. Despite this loss of upward momentum, crypto analyst Mags has identified indicators that suggest a bullish upswing in the immediate future. Mags predicts that BTC could be on the brink of a major rally, provided it maintains stability at a crucial support area.
According to Mags, this support level could act as a springboard for an upsurge to a new all-time high for BTC. The upcoming rally presents an opportunity for investors who missed out on previous dips to $25,000 and $52,000. Analyzing Bitcoin’s performance during this bull run, Mags emphasized that the weekly Relative Strength Index (RSI) at level 45 has historically served as a solid support area, which might also protect against recent downturns.
The prior tests began when Bitcoin hit a low of $25,000, resulting in a significant rally of over 193%, raising BTC’s value to a previous high of $73,100. In another scenario where BTC marked a low of $52,000, there was a subsequent 107% price increase to the current all-time high of $109,400. Currently, with BTC facing a third test after dropping to a low of $76,000, Mags believes that historical trends could repeat themselves, potentially fueling a strong leg-up in the coming weeks.
If the weekly RSI holds at the 45 level and merely retreats back to the declining trendline, Mags forecasts a potential 64% rally from this area. This potential price surge would bring BTC to an approximate value of $128,000, significantly aligning with the 1.618 Fibonacci extension level.
With the market moving sideways, the Bitcoin Fear and Greed Index has plunged back into the extreme fear zone, indicating rising anxiety among investors. This shift implies that traders are becoming increasingly cautious as Bitcoin struggles to hold onto crucial price levels. However, Mags has pointed out that extreme fear has frequently preceded strong rebounds in BTC during previous occurrences. Notably, the last time the index fell to extreme fear was when Bitcoin traded at $54,000 in September 2024, leading to a subsequent price increase of over 102%. Given the current drop into extreme fear, many believe that BTC may be poised for a price reversal in the near term.
