Bitcoin has reached a critical moment, attracting the attention of cryptocurrency analyst Caleb Franzen. Franzen recently examined key charts tracking Bitcoin’s performance, specifically focusing on the 200-day moving average line since the end of 2022.
Franzen expressed concern over Bitcoin recently falling below these long-term averages, which in a bull market, prices typically remain above. Breaking below these averages may indicate that the leading cryptocurrency is entering a bearish phase. However, Franzen remains calm and points out that similar declines occurred in August and June, but BTC quickly recovered each time.
The expert used a simple analogy to explain Bitcoin’s potential trajectory. He believes that if Bitcoin can regain the upper boundary of the moving average line, it may experience a significant rebound. However, he also warns that based on historical patterns, the first attempt to break through may not be successful.
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Analyst explanation:
A typical characteristic of a bull market is that the price trend is above key short-term, medium-term, and long-term moving averages. Therefore, if we break below these long-term indicators, it is not a bullish signal but may indicate a bearish phase.
Franzen also commented on the importance of cryptocurrencies temporarily falling below their short-term moving averages and explained that such declines are common in bull markets and often quickly recover. He emphasized that BTC has repeatedly demonstrated resilience, being able to quickly recover and maintain an upward trend even in the face of challenges.
Looking at the larger market pattern, experts optimistically believe that using the Fibonacci method, Bitcoin can reach at least $175,000 in this market cycle. Franzen has maintained this target for some time and believes that if BTC reaches this level, other major cryptocurrencies such as Ethereum and Solana may also see significant gains.
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