Bitcoin Dips to $78K: Analyst Predicts Rebound to $170K in Coming Weeks
A notable market analyst believes Bitcoin could consolidate for the next few weeks before recovering to a new all-time high.Analyst Egrag shared this outlook in a post on X today. The disclosure came as an update to his analysis in which he speculated on two possible scenarios for Bitcoin ahead of President Donald Trump's inauguration.At that time, he suggested Bitcoin could rise to $120K before experiencing a major price dump, specifically targeting the CME Gap before resuming the bull run. His second scenario anticipated a significant dip to the CME Gap, precisely the $70,000 to $75,000 price range, before Bitcoin resumed its upward trajectory.Now, the second scenario has played out, and Egrag took to X to take pride in his accurate prediction. For context, Bitcoin dipped to as low as $78,200 today, the lowest price since this year, a development that has significantly impacted the altcoin market.With the $70K range materializing, Egrag shared an updated outlook on where Bitcoin could be headed in the next few weeks.Short-Term Volatility Before the Next Leg UpFirst, Egrag highlighted that the $70K to $75K key level aligns with the 200-day Exponential Moving Average (EMA). According to him, this range is now acting as a critical support zone.He also noted that Bitcoins price action is following a familiar fractal seen between July and September 2024. This suggests that the market could experience a bumpy ride through March and April 2025, with price fluctuations around the 200 EMA before resuming its uptrend.Egrag predicts that this consolidation phase will eventually lead to a significant breakout, similar to past cycles.Bitcoin Next Target: $150K$170K?Using Fibonacci 1.618 extensions and fractal analysis, Egrag projects that Bitcoin could reach $150K$170K as the cycle's peak. This aligns with predictions he has maintained since 2021. However, according to him, many have overlooked this outlook in favor of more ambitious targets.
Text source: The Crypto Basic
