In a recent analysis on Crypto Banter, market analyst Kyledoops discussed the upper limit of the trend channel for Bitcoin price. The analyst has correctly identified the trend and suggests that a break above this boundary could lead to a rise to $65,000. However, he also explained the importance of understanding chart patterns within market cycles, highlighting previous instances where Bitcoin has approached similar resistance levels.
He noted that taking into account the timing cycle along with previous occurrences where Bitcoin reached the upper limit of a parallel channel, it has been 1,200 days since Bitcoin left that channel. This historical context explains the importance of this level. During that period, the price also experienced a trend continuation with the moving average backtesting the lower area as 50% support, along with the 200-day moving average on a weekly time frame.
This suggests the potential for a large-scale move. If we zoom in on the daily time frame, there is also a possibility of an altcoin rally. Even if a potential regional high exists, a minor decline in Bitcoin dominance within the region could lead to a temporary downturn.
He recommended using the Fibonacci retracement tool on the daily time frame to track potential pullback levels, currently estimated at around $44,000 to $45,000. Despite signs of market momentum, extreme greed has not yet been reached, indicating the potential for further upside without immediate selling pressure.
The next full moon is expected to be on February 24, which could coincide with a potential buying opportunity if markets fall. Bitcoin price is still above key technical levels, but around $48,000 is bearish and could signal a trend reversal.
As of this writing, Bitcoin is trading at $51,030, down more than 2%.