Christopher Inks, a veteran trader, has his eye on what’s next for Bitcoin.
In his job on social network
Investors and enthusiasts are closely watching Bitcoin’s dance around this crucial market threshold that could set the tone for its near-term trajectory.
A technical vision
The chart shared by Inks offers a visual representation of Bitcoin’s price movements, with a series of Fibonacci retracement levels – a popular tool among traders for identifying potential reversal points on charts based on past movements.
The highlighted area around the 70.5% level is particularly intriguing because it corresponds to a significant volume of Bitcoin traded. This could indicate possible support.
With the price near this level, traders are wondering if this will serve as a springboard for the cryptocurrency’s value or if further consolidation is on the horizon.
Optimism and caution
The flip side of this bullish forecast is a sobering outlook CryptoQuant analysts who warn that the approval of a spot bitcoin ETF could trigger a “news sell-off” event. This could eventually send Bitcoin down to a low of $32,000.
This cautious stance is supported by historical patterns of price corrections following periods of high unrealized profits for Bitcoin holders, particularly when the digital asset has surpassed important milestones (like the recent $40,000 mark).
Market corrections are not uncommon and are often part of the ebb and flow of business cycles.