Bitcoin has recently experienced a notable volatility, with prices retracting to around $112,770. While this situation raises alarms for immediate traders, the overall mood in the cryptocurrency realm remains primarily positive. Optimism persists, bolstered by past performance and future projections.
One influential analyst, Merlijn The Trader, is still confident in the potential for price increases. He offers insights into what he terms the “Bitcoin Market Maker Model,” providing strategies not only for predicting price movements but also for identifying optimal profit-taking moments before the market shifts.
Preparing for a Parabolic Surge
According to Merlijn’s latest analysis, current indicators on Bitcoin’s long-term graph suggest a classical market maker pattern. His model indicates that BTC is about to enter a significant upward trend, characterized by an eventual sharp decline. As he puts it, “Traders will rush in as profits are extracted by the experts.”
In earlier discussions, the analyst highlighted the emergence of an inverse head and shoulders configuration in the candlestick charts, potentially driving Bitcoin’s value up to $145,000 shortly. Additionally, he postulated that BTC could eventually reach between $250,000 and $300,000 within the next year, as per his comprehensive assessment of market trends.
In his most recent projections, Merlijn has delineated the prime timeframe and price range for selling profits as the expected upward movement materializes. His charts illustrate a designated green area, indicating the optimal zone for profit-taking before a market downturn. This zone spans between $160,000 and $190,000, representing a crucial segment of the predicted pattern akin to what occurred in 2021.
The accompanying visuals include phases of accumulation (gray), breakout (blue), euphoria (green), and exhaustion (red), reflecting how these sequences have historically unfolded in Bitcoin’s market. Merlijn asserts that Bitcoin is re-entering the green zone, indicating that a period of exuberance similar to past market peaks is on the horizon. He emphasizes the importance of securing profits ahead of likely corrections post-rally.
Current Trends and Projections Amidst Price Declines
Bitcoin’s recent drop below the $113,000 mark marks a continued descent, reflecting a 3.4% decrease over the past week following trends below $115,000. Despite this apparent short-term setback, analysts, including Merlijn, view this downturn as a normal phase of consolidation rather than a definitive reversal of the overall trend.
There is a widespread consensus that Bitcoin remains positioned for considerable growth in the upcoming months. Analysts continue to echo the potential for a parabolic rise, possibly eclipsing its recent all-time high of $122,838. As of now, Bitcoin’s trading price stands at $113,990.
