Bitcoin on Track to Hit $42K: Fibonacci Channel Insights and Strategic Roadmap
Is Bitcoin Losing Its Shine? Analyzing the Current Crypto Landscape and Future Projections
With increasing crypto regulations worldwide, including the recent banning of stablecoins in Europe and high transaction fees, the popularity of crypto is waning. Many people are starting to lose faith in cryptocurrencies. When there’s no use, there’s no value. Perhaps, crypto isn’t the revolutionary technology it was touted to be by banks.
Investors have faced significant disappointment with their crypto holdings in recent years. Ask yourself: Are you happy with your crypto investments? Wouldn’t it have been better to invest in a company like NVIDIA? Over the past two years, NVIDIA has seen a tenfold increase, despite being a major stock, not a penny stock.
Bitcoin reached an all-time high in March but failed to maintain its upward trajectory. Instead, it experienced a liquidity sweep and is now down 27% from its peak. Bitcoin could not sustain the ascending black channel seen on the chart. Ideally, we want to see a breakout above an ascending channel, followed by a retest and continuation of the bull run. In Bitcoin’s case, there was a retest of the black channel in April, but the price has since fallen back into the channel, signaling weakness.
We have completed the Elliott wave impulse wave (12345), with waves 2 and 4 showing around a 20% retracement. Bitcoin appears to be heading towards the $42K level. Why is this level so crucial? By examining the chart and drawing a Fibonacci parallel channel, we can see its importance.
To draw the channel, we use key points such as the bull market peak in 2021, the bear market bottom in 2022, and the bull market peak in 2024. This gives us a clear Fibonacci channel. Key levels to watch are 0.618, 0.5, and 0.382. While 0.764 and 0.236 are also levels, they generally have a lower success rate. The 0.5 level, though not a Fibonacci number, is the midpoint of the ascending channel, making it a strong dynamic level. The first major support is at 0.382 (around $42K), which coincides with the point of control (POC) of the volume profile.
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Bitcoin bear markets typically last around one year. If this was the top of the bull run, we might be in for a period of stagnation.
15 hours ago
Comment: Currently, Bitcoin is bearish, and I expect it to hit $52K soon! In my next post, I’ll reveal who Satoshi Nakamoto is. Make sure to follow for more updates.
