Bitcoin has experienced a retracement from the $66,000 mark, but this does not imply that the optimism around the leading cryptocurrency has vanished entirely. It is currently hovering roughly 4% below $66,000, making the $63,000 mark particularly appealing for bullish investors. However, considering Bitcoin’s recent trend, the market may encounter a significant correction that could drive its value below $60,000 once more.
Bitcoin’s Symmetrical Triangle Might Indicate A Retest
Crypto analyst Xanrox has outlined a potential scenario indicating that Bitcoin’s price could dip further. The analyst highlights a previously formed symmetrical triangle in the Bitcoin chart amid the last downturn. The lower edge of this triangle is approximately around $56,000, potentially acting as a barrier for the BTC price.
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Nonetheless, as the analyst notes, a retest of the symmetrical triangle that drives the price downward isn’t entirely negative. Frequently, an initial breakout from a pattern like the symmetrical triangle, followed by a retest, is seen as positive since it offers traders another opportunity to enter at a favorable price.
Moreover, the crypto analyst points out a breakdown of an ascending channel on the Bitcoin chart. This situation suggests that the BTC price may still face a correction. Considering both the ascending channel and the symmetrical triangle, it is possible for Bitcoin to fall below the $60,000 mark again.
As the analyst further explains, the initial wave 1 impulse has already concluded, indicating that a correction is forthcoming. Referring to the Fibonacci retracement levels, the analyst advises traders to focus on the 0.382 level, along with the 0.5 and 0.618 levels, with the first two being particularly significant.
When Is The Optimal Time To Acquire BTC?
Regarding buying Bitcoin, the crypto analyst emphasizes that the 0.382 and 0.5 Fibonacci levels represent the best buying opportunities. Additionally, Xanrox highlights “an unfilled FVG (Fair Value Gap)” and suggests that traders should aim to purchase the digital asset within this zone.
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Currently, this unfilled FVG ranges between $60,277 and $61,590. Therefore, placing buy orders within these boundaries would be prudent. The crypto analyst explains that while this Bitcoin gap may not be completely filled, even a partial fill would be beneficial.
“I am very optimistic about Bitcoin at the moment, and should you buy now and sell at over 120K, I would consider it a wise trade!” the crypto analyst concluded.
Featured image created with Dall.E, chart from Tradingview.com
