30 May 2024
In a technical analysis shared by noted crypto analyst Josh Olszewicz on the social platform X, there appears to be a significant bullish sentiment building around Bitcoin, particularly if it surpasses the crucial $72,000 mark. Olszewicz, leveraging both the Ichimoku Cloud and Fibonacci extensions, illustrates a scenario where breaking this key resistance level could catapult Bitcoin towards a target of $91,500.
Here’s How Bitcoin Could Skyrocket To $91,500
The analysis utilizes the Ichimoku Cloud, a complex technical indicator that provides insights into the market’s momentum, trend direction, and potential areas of support and resistance over different time frames. Currently, Bitcoin’s price action is depicted as being in a bullish phase, situated above the cloud. This positioning above the cloud is traditionally viewed as a bullish signal, suggesting a strong uptrend with robust support levels formed by the cloud’s lower boundaries.
In the Ichimoku setup, the conversion line (Tenkan-sen) and the baseline (Kijun-sen) cross occasionally, providing buy or sell signals based on their intersection relative to the cloud. As of the latest chart, the conversion line recently crossed above the baseline, reinforcing the bullish outlook depicted by the cloud’s positioning.
Adding another layer to the technical narrative, Fibonacci extension levels have been plotted from a significant low at $56,485.87 up to a high, providing potential targets and resistance levels. The 0.5 Fibonacci extension level is marked at $63,727.40, already surpassed by the current price trajectory.
The 1.0 extension finds itself at $71,897.29, closely aligning with the analyst’s noted pivotal level of $72,000. Beyond this, the 1.618 extension at $83,456.87 represents a lucrative first price target, while the ultimate 2.0 extension looms at $91,513.53.
A key observation is the volume profile, which shows a declining trend in trading volume. This decreasing volume can often indicate a period of accumulation, as less selling pressure allows prices to stabilize and potentially build a base for an upward breakout. The declining volume trend line underpins the consolidation phase seen in recent months, suggesting that a sharp movement could be imminent once accumulation concludes.
Olszewicz’s emphatic remark, “BTC: when this baby hits $72k you’re going to see some serious shit,” underscores the high stakes associated with this resistance level. This is not merely a technical observation but a signal to the market that once $72,000 is decisively broken, the path to much higher levels becomes increasingly probable.
Such a breakout would likely activate a flurry of trading activity, as both retail and institutional investors might see it as a confirmation of a sustained upward trend, potentially pushing the price towards the $91,500 mark indicated by the 2.0 Fibonacci extension.
At press time, BTC traded at $67,783.