Bitcoin has reached a critical moment, attracting the attention of cryptocurrency analyst Caleb Franzen.
Franzen recently examined key charts tracking Bitcoin’s performance, particularly focusing on the 200-day moving average since the end of 2022.
He expressed concern over Bitcoin’s recent dip below these long-term averages. During bull markets, prices typically remain above these key levels.
Breaking below these averages could indicate that the leading cryptocurrency is entering a bearish phase. However, Franzen remains calm and points out that similar dips occurred in August and June, and Bitcoin quickly recovered each time.
The expert used a simple analogy to explain Bitcoin’s potential trajectory. He believes that if Bitcoin can reclaim the boundary of the moving average, it could undergo a significant rebound. However, he also warns that based on historical patterns, the first attempt to break through may not succeed.
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Analyst Explanation:
A typical characteristic of a bull market is when prices trend above key short-term, medium-term, and long-term moving averages. Therefore, breaking below these long-term indicators is not a bullish signal but may indicate a bearish phase.
Franzen also commented on the significance of short-term dips below the short-term moving average for cryptocurrencies and explained that such declines are common during bull markets and often quickly recover. He emphasizes Bitcoin’s resilience, which has repeatedly demonstrated the ability to quickly recover and maintain an upward trend even in the face of challenges.
Looking at the larger market pattern, experts optimistically believe that using the Fibonacci method, Bitcoin could reach at least $175,000 in this market cycle. Franzen has maintained this target for some time and believes that if BTC reaches this level, other major cryptocurrencies such as Ethereum and Solana may also see significant gains.
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