Bitcoin (BTC) faced another setback on Monday, displaying signs of a further decline despite optimistic expectations in recent months.
Notably, hopes were high that the approval of a spot Bitcoin ETF would propel the cryptocurrency’s price to new heights. However, BTC has taken a hit in the short term, leaving investors at a crossroads following a 16% drop since the approval on January 10.
That said, amid the price uncertainty, experts have been struggling to predict the future trajectory of the world’s largest cryptocurrency. However, co-founders of prominent crypto analytics firm Glassnode, Jan Happel and Yann Allemann, operating under the X account “Negentropic,” shared their insights on Monday. Notably, their sentiments conveyed a bullish outlook for Bitcoin, with a conviction that the price could mirror the bullish patterns observed in past years.
“History does not repeat itself – but it often rhymes (Mark Twain). Wrote the duo. They then emphasized how BTC has gone back to the 6.618 Fib Extension after undergoing a Bull Flag correction.
“The current scenario resembles a small correction akin to those seen in late 2017 and late 2020. The question arises: will history rhyme in 2024, and will BTC reach its 6.618 Fib Extension in this Bull Market? This observation implies a target of $120K, with only time revealing the outcome.” They added.
In a separate tweet, the analysts further highlighted Bitcoin’s bullish divergence between price action and the Relative Strength Index, countering expectations of a further decline.
Elsewhere, seasoned market analyst Kevin Svenson projected that Bitcoin could reach a new all-time high in the next four months. Svenson’s analysis focused on the historical correlation between the S&P 500 index and Bitcoin’s price movements, indicating a potential upcoming surge for Bitcoin.
However, not everyone shares a bullish stance for BTC, with popular crypto analyst “IncomeSharks” expressing caution. Notably, the pundit warned of a scenario where Bitcoin breaks below the $41,000 support level, foreseeing a drop to the $34,000-$36,000 level. He further emphasized the need to avoid a potential bull trap for exit liquidity. He suggested waiting for manipulation to lower, institutional buying, and bears getting trapped before anticipating an upward movement.
That said, as Bitcoin enters a period of uncertainty, market participants are closely monitoring various indicators and expert opinions, considering that the next few months will be critical for determining the direction of BTC’s price.
At press time, Bitcoin was trading at $40,543 after a 2.64% drop over the past 24 hours, as per CoinMarketCap data.