According to trader Mags (@thescalpingpro), Bitcoin price could see one of two scenarios play out as it tests a significant 2021-2022 trading range. If price breaks out higher first, Bitcoin could run to $48,000 before a deeper pullback. Alternatively, it may consolidate around the current level first before dropping to $35,000 support.
Revisiting a Massive Historic Range
As Mags explained, “#Bitcoin testing an Important Level. $BTC traded within a massive range back in 2021-2022.” After breaking down from that range, BTC printed bear market lows at $15,500 but has now reclaimed the old trading zone.
With Bitcoin back inside this historic price bandwidth, Mags highlighted two potential outlooks next:
“There are two possible scenarios: Price continues to go higher and shoots up till $48,000 before experiencing a deeper retracement back to the range low. (Fakeout above mid range + Retest of fib 0.618) Price has topped out locally at the mid-range and will start heading lower from here till $35,000 before the next leg up. (Consolidates here with multiple retest before a correct till $35k monthly support)”
The Bigger Picture is Bullish
As we near the end of 2023, Bitcoin hovering around $17,000 means Mags’ outlined scenarios could play out soon. While tricky short-term price action is expected, Mags remains clearly bullish on BTC over the longer-term.
In his words: “Whatever scenario plays out, the overall idea is bullish, any dips are opportunities for buying.” After a brutal crypto winter, Bitcoin regaining this historic range signals the macro bottom is likely in.
Read also:
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So while Bitcoin may retest range lows near $15,500 again if the second scenario happens, the bull market looks poised to kick back into gear in 2024. Buckle up for what promises to be a wild ride!
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