As the pullback within the rising channel intensifies, will Bitcoin drop below $68,000 or rally toward $78,000?
The crypto market has declined by 5.68% today, crashing back to $2.28 trillion from the $2.418 trillion peak on Tuesday. Amid the crashing market, Bitcoin has revisited the $69,300 level.
Crashing from the 7-day high of $73,600, the BTC price has dropped by 5.84%. With a correction rally at play, will the biggest crypto crash under the $68k mark? Find out now!
Bitcoin Tests Crucial 4-hour Support
On the 4-hour chart, the recent pullback in Bitcoin is testing a crucial support trendline, which forms a rising channel pattern.
The bearish correction began with a double-top pattern near $72,700. After facing rejection above the $73,000 mark, the neckline of the bearish pattern was established at $71,600.
Following this double-top breakout, the BTC price has returned to the support trendline near the 38.20% trend-based Fibonacci retracement level within the rising channel. Currently, it is finding support, as indicated by a lower price rejection, hinting at a potential bullish comeback.
However, Bitcoin must surpass the 50% Fibonacci level at $70,310 for a sustained recovery. A successful bullish recovery could see Bitcoin challenge the peak of the double top at $72,700. Conversely, a drop below the support trendline could trigger a significant sell-off in Bitcoin.
The next crucial support levels to watch in case of a decline are $67,500 and the $65,000 mark.
Analyst Ali Martinez Targets $78k
Despite the sudden crash, widely followed crypto analyst Ali Martinez retweeted his recent analysis, which predicted a minor pullback to $69,000. Highlighting the number 69 in his recent tweet, Martinez reiterated an analysis that revealed if Bitcoin stood above $65,000, a price jump to $72,000 was possible.
However, he also highlighted that a pullback to $69,000 is possible before starting a bullish trend to $78,000. As the first three variables of Martinez’s prediction stand true, is the next potential target for Bitcoin standing at the $78,000 mark?
Well, the trend-based Fibonacci levels in the 4-hour chart predict the next all-time high near $75,620. Meanwhile, an extended rally could target $82,183, or the 161.80% Fibonacci level.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
