Despite the recent bearish Bitcoin price trend, one analyst is calling for a rally to $120,000 after a small correction.
As the price of Bitcoin grapples with the $40,000 support level, many thought leaders, including former BitMEX CEO Arthur Hayes, are calling for a break below the range and short-term bearishness.
Admittedly, the chances of an imminent recovery become bleaker with each red candle, and what seemed to be a mere consolidation may wipe away gains amassed over the past few months.
However, amid the bearish market sentiment, widely followed analyst Negentropic is calling for a Bitcoin price bounce following what he calls a “small correction.” Notably, Negentropic used the famous Fibonacci indicator to predict a possible Bitcoin surge to $120,000 in mid-2024.
History on Course for a Repeat?
According to a detailed analysis, the price of Bitcoin has risen to the 6.618 Fib Extension on two major occasions in the past, following a small decline. Both instances culminated in Bitcoin hitting new all-time highs in 2017 and 2021.
First, the leading cryptocurrency typically forms a bull flag representing price consolidation for a short-term period. Next, the price moves parabolically, hitting a 6.618 Fib Extension top, as was the case during the two previous bull runs.
The analyst assumes that Bitcoin’s recent bearish trend may represent the final correction phase before the price goes northward. If the prediction comes true, then BTC will go as high as $120,000 by June and potentially rally even more if the bull market continues.
Notably, the analyst includes a disclaimer with the famous Mark Twain saying, which confirms that history does not always repeat itself but may rhyme. However, it is noteworthy that he is not the only trader calling for bullish price action in the next 12 to 24 months.
Some of the most bullish Bitcoin predictions see the cryptocurrency hitting a six-figure mark in the upcoming bull market. Such an increase would represent an over 120% increase, with Bitcoin trading at $40,753 at the time of writing.