On Friday, the Bitcoin price experienced another flash crash, dipping toward $103,000 from $109,300. While not as alarming as the sharp decline seen on October 10, this latest downturn has ignited fresh speculation regarding the cryptocurrency’s future trajectory.
The expert noted that in 2020, a widespread collapse affected various assets, including stocks, gold, and Bitcoin. By 2021, Bitcoin was already in a downtrend. In contrast, today, while the Bitcoin price has faced challenges, stocks and gold are holding steady or even rising.
He believes that the recent struggles in the crypto market appear to stem from a unique credit event rather than a broader macroeconomic meltdown, as excessive leverage was wiped out in the process.
According to VirtualBacon’s analysis, until the Bitcoin price closes below the $100,000 mark, this downturn should be viewed as a correction within an ongoing bull market rather than a definitive top.
Despite the recent flush, VirtualBacon asserted that the market dynamics have not fundamentally changed; it may have even accelerated a reset in sentiment, clearing out leverage to return to cycle lows.
VirtualBacon outlines a clear plan moving forward: Bitcoin is expected to consolidate between $110,000 and $125,000. A break above the $125,000 to $130,000 range could signal the start of a new altcoin season.
It remains to be seen which direction the Bitcoin price will take next. For now, the cryptocurrency has recovered slightly from Friday’s drop to around $106,620.
Featured image from DALL-E, chart from TradingView.com
