Critical Phase for Bitcoin

Recently, Bitcoin has fallen below long-term moving averages, causing concern among investors. Cryptocurrency analyst Caleb Franzen is closely monitoring this situation. Franzen analyzes Bitcoin’s performance since late 2022, noting that current declines below long-term averages could be perceived as a negative signal in the market.

However, Franzen emphasizes that these declines are not a cause for panic. He recalls similar declines in the past and notes that Bitcoin has quickly recovered each time.

Bear Market or Temporary Pause?

Franzen explains Bitcoin‘s potential with a simple analogy: when Bitcoin is above moving averages, it can experience strong upward movements. However, Franzen warns that caution is needed, as initial attempts may not always succeed and could result in a short-term decline.

Franzen points out that bear markets are characterized by prices staying below long-term averages, which is generally not a positive indicator for the market’s overall outlook.

Bitcoin Could Easily Reach $175,000

According to Franzen, Bitcoin falling below short-term moving averages is a common occurrence in every bull market. Such declines typically result in a swift recovery, with Bitcoin continuing its upward trend despite challenges.

Franzen predicts that after this recovery phase, Bitcoin could reach $175,000. Using Fibonacci extension methods, Franzen suggests that if Bitcoin reaches this level, other major cryptocurrencies like Ethereum and Solana could also see significant gains.

Note: This is not investment advice