Bitcoin (BTC) Faces Critical Juncture as Analyst Eyes Key Chart, Predicts BTC Price Could Hit $175K This Cycle

Bitcoin is at a critical point, and crypto analyst Caleb Franzen is paying close attention. He recently analyzed a key chart that tracks Bitcoin's performance

Crypto analyst Caleb Franzen is keeping a close eye on Bitcoin’s performance, particularly in relation to the 200-day moving average. In an interview with Thinking Crypto, Franzen expressed concern over Bitcoin’s recent drop below these long-term averages, highlighting that in bull markets, prices usually remain above these key levels.

Franzen explained that dropping below these averages could indicate that Bitcoin might be entering a bearish phase. However, he remained optimistic, pointing out that similar drops occurred earlier in the year, in August and June, and each time Bitcoin quickly bounced back.

Franzen used a simple analogy to describe Bitcoin’s potential, comparing it to someone trying to climb a cloud. He suggested that once Bitcoin gets back above the moving average cloud, it could see a strong rise. However, based on past trends, he noted that the first attempt to break through might not be immediately successful.

“Bull markets are characterized by price trending above key short-term, medium-term, and long-term moving averages. So, if we’re breaking below those long-term moving averages, it’s not a bullish indication; we’re likely in a bearish regime,” Franzen stated.

Franzen also discussed the significance of Bitcoin’s temporary dips below short-term moving averages, noting that in a bull market, such dips are common and often followed by a quick recovery. He pointed out that Bitcoin has consistently shown resilience, rebounding quickly and maintaining its upward trend even after facing challenges.

Looking ahead, Franzen has a big price target for Bitcoin. Using a method called the Fibonacci extension, he predicts that Bitcoin could reach at least $175,000 during this market cycle. Franzen has been consistently maintaining this target, and he believes that if Bitcoin hits this level, other major cryptocurrencies like Ethereum and Solana could also see substantial gains.

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