Bitcoin has reportedly fallen 7.5% from its peak of around $123,250 three weeks ago, but experts say the latest drop could be enough to break the $150,000 mark.
On the 3rd, Bitcoin recovered to the 50-day exponential moving average (EMA), which it had temporarily fallen below the previous day, and used it as support again.
The EMA has been the starting point for many strong rebounds in the past, including a 25% surge in June after breaking below this support level.
Analyst BitBull has diagnosed that "Bitcoin is currently exhibiting similar behavior to that time," and predicts that it will reach its June 2020 target within the next few days.
He predicted that a similar rebound trend is likely to be replicated. "Even if BTC falls to $110,000-$112,000, this could be a 'perfect bottom'."
The current support at the 50-day EMA coincides with the neckline of Bitcoin's current inverse head and shoulder (IH&S) pattern.
Bitcoin recently broke through this neckline and then exhibited a classic "retest" move, reaffirming the support and successfully rebounding. This is a valid bullish reversal pattern.
If this trend continues, the IH&S pattern's technical target price will reach $148,250, which is the widely expected BTC price target of 2025.
This is close to the upper target price of $150,000, which many analysts believe is likely to be reached around October.
On-chain data also suggests that the current price correction could be a precursor to another bullish rally.
According to CryptoQuant, there have been three major whale profit-taking events during this bull market, which lasted from 2023 to 2025.
The first wave will occur after the US cash ETF listing in March 2024, and the second wave will occur after Donald Trump is appointed at the end of 2024.
The third time came in July, when Bitcoin surpassed $120,000, after a certain "Old Whale"
The move began when Bitcoin's "Whale" sold about 80,000 BTC (about $9.6 billion). CryptoQuant said in a report that "each wave will see Bitcoin undergo a period of correction of 2-4 months."
The report further analyzed, "The current market appears to have entered a cyclical cooling period, which is due to
"This could be the preparation for a new price rise, as in the past," he stressed.
2025/08/04 16:36 KST
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