Bitcoin’s $178K Target In Sight? Analyst Highlights Jan. 2024 Rally

Bitcoin has been on a correction path because it reached a brand new all-time excessive of $108,135 on December 17. Notably, this correction has seen the main cryptocurrency decline by about 10% up till the time of writing and even breaking beneath $93,000 in a short time.

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This notable decline has seen Bitcoin retesting the Bollinger Bands, and technical evaluation suggests a bounce from right here to succeed in a value goal round $178,000.

Bitcoin Retests Month-to-month Higher Bollinger Band

Bitcoin’s recent price correction has caught the attention of crypto analyst Tony Severino, who highlighted a important retest of the month-to-month higher Bollinger Band. Sharing his insights on social media platform X, Severino emphasised the importance of this technical indicator, which measures market volatility and potential reversal factors.

In response to him, this improvement mirrors an analogous sample noticed in January 2024, which finally led to a considerable rally after an analogous retest.

In response to the day by day candlestick chart shared by Tony Severino, the higher Bollinger Band is presently located simply above $96,000, which is round Bitcoin’s present value. This Bollinger Band retest means that Bitcoin could be getting into a brand new part of upward momentum after the current corrections. 

Historic Echoes: January 2024’s 86% Rally Presents A Blueprint

Severino’s evaluation attracts parallels between the present value motion and Bitcoin’s conduct earlier in 2024. He famous that in January 2024, an analogous retest of the month-to-month higher Bollinger Band preceded an 86% rally in Bitcoin’s value.

At the moment, Bitcoin was buying and selling close to $46,000, following a robust value rally that was introduced ahead from late 2023. Nonetheless, January noticed a short correction, with Bitcoin’s value dropping to $40,000 to check the higher Bollinger Band. This check acted as a launchpad for not solely a continued rally but in addition pushed Bitcoin to interrupt its then all-time excessive and surpass $70,000 in March for the primary time in its historical past.

If Bitcoin have been to duplicate this 86% rally at this level, it may soar to roughly $178,000, which Severino famous is aligning with the higher vary of his goal zone. In another analysis, the analyst predicted that Bitcoin may attain its market high as early as January 20, 2025.

On the time of writing, Bitcoin is buying and selling $96,402, nonetheless hovering across the higher Bollinger Band. Apparently, the main cryptocurrency is presently down by 2.11% and 5.4% prior to now 24 hours and 7 days, respectively.

This pullback has led to the realization of over $5.72 billion in Bitcoin earnings, which has added to the short-term promoting strain. The influence of this correction is clear in Bitcoin’s Relative Power Index (RSI), which has fallen sharply from 69 on December 17 to its present studying of 45.

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Nonetheless, there are causes to consider that the promoting strain could also be easing. It’s because the RSI stage of 43 has acted as a major assist zone for Bitcoin since September. If this assist holds, it may present the inspiration for Bitcoin’s transfer in direction of $178,000.

Featured picture from ABC Information, chart from TradingView