Overview
Bitcoin is the best litmus test for the crypto market. Whenever I can't get a read on a particular token, I refer back to Bitcoin. After reviewing the chart I believe Bitcoin is on route to $100K. Honestly, I wouldn't be surprised if it rockets pass this price and hits the next key Fibonacci level around $150K but that is months down the line. For now I'd like to stick with a March '24 prediction.
Trading Patterns
Bitcoin appears to be setting up for an Inverse Head & Shoulders or a Cup & Handle pattern. While both are bullish signals it does imply there will be a temporary dip in the price before further buying volume ensues and takes it to new highs.
Scenario 1 (Inverse H&S)
An Inverse H&S could result in a correction back to $35K-42K if it comes to fruition.
Scenario 2 (Cup & Handle)
A Cup & Handle could result in a correction to the same range with a more likely price target near 42K.
Supporting Theory
You may be wondering what the white vertical line is in both of the trading pattern scenarios. It marks the next FOMC meeting which occurs on 19-20 March 2024. I believe a significant correction is going to occur within the equity market following this meeting and while its timing in relation to the development of these trading patterns could be coincidental, I believe it supports the idea that the crypto market may also experience a drawback.
Now I think it goes without saying that I don't believe these corrections will be a market reversal back into a crypto winter. I just believe the FOMC is going to finally make changes regarding the Fed Rates and that, when it does, regardless of whether they are increased or decreased the large investors are going to withdraw for two reasons:
1) Realize profits
2) To get a feel for the direction of the market moving forward
Once the second condition has taken place then I believe both the equity and crypto markets will continue their rallies as the "whales" reinsert their liquidity.
March Price Prediction
Everything aside, I believe Bitcoin will continue to grow for the next week or two. While there is not much room left before the prior trading patterns would need to see a correction, I believe that Bitcoin could reach 69K before the next FOMC meeting.
Bitcoin is the best litmus test for the crypto market. Whenever I can't get a read on a particular token, I refer back to Bitcoin. After reviewing the chart I believe Bitcoin is on route to $100K. Honestly, I wouldn't be surprised if it rockets pass this price and hits the next key Fibonacci level around $150K but that is months down the line. For now I'd like to stick with a March '24 prediction.
Trading Patterns
Bitcoin appears to be setting up for an Inverse Head & Shoulders or a Cup & Handle pattern. While both are bullish signals it does imply there will be a temporary dip in the price before further buying volume ensues and takes it to new highs.
Scenario 1 (Inverse H&S)
An Inverse H&S could result in a correction back to $35K-42K if it comes to fruition.
Scenario 2 (Cup & Handle)
A Cup & Handle could result in a correction to the same range with a more likely price target near 42K.
Supporting Theory
You may be wondering what the white vertical line is in both of the trading pattern scenarios. It marks the next FOMC meeting which occurs on 19-20 March 2024. I believe a significant correction is going to occur within the equity market following this meeting and while its timing in relation to the development of these trading patterns could be coincidental, I believe it supports the idea that the crypto market may also experience a drawback.
Now I think it goes without saying that I don't believe these corrections will be a market reversal back into a crypto winter. I just believe the FOMC is going to finally make changes regarding the Fed Rates and that, when it does, regardless of whether they are increased or decreased the large investors are going to withdraw for two reasons:
1) Realize profits
2) To get a feel for the direction of the market moving forward
Once the second condition has taken place then I believe both the equity and crypto markets will continue their rallies as the "whales" reinsert their liquidity.
March Price Prediction
Everything aside, I believe Bitcoin will continue to grow for the next week or two. While there is not much room left before the prior trading patterns would need to see a correction, I believe that Bitcoin could reach 69K before the next FOMC meeting.
