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PlanB has forecast that Bitcoin could reach an average price of $5000 in the 2024-28 cycle.
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PlanB stated that the current market collapse was caused by the Bybit hack.
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Bitcoin must break above $93,000 to confirm new highs.
Bitcoin (BTC), at the moment, is in a phase of uncertainty. Recent price movements have sparked debates about whether the market will enter a distribution phase that leads to a bearish trend or continue its bullish trajectory.
CoinMarketCap data show that in the last 24 hours, the altcoin fell 9.94%, and currently trades for $83,137.49.
Bitcoin Price Drop Sparks Market Insecurity
Many traders and analysts are closely watching key technical indicators, as well as support and resistance levels.
PlanB, creator of the Stock to Flow (S2F), predicts that BTC will reach an average price between $500,000 and $600,000 during the 2024-2028 half-cycle. He also suggests that the range could be between $250,000 and $1 million.
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PlanB cites Bybit Hack as a Market Spook
PlanB explained in a YouTube video that this decline was primarily caused by the $1.4 billion Bybit Ethereum Hack.
He had expected a significant drop, not a new all-time high. Bitcoin is volatile even in bull markets. He sees the market as a crossroads, either continuing its bull run, or entering a phase of distribution that leads to a downward cycle.
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Technical Indicators Still Point To Uptrend
He highlighted key indicators. He noted that although the RSI dropped from 76 down to 63, it is still above 50. This indicates that the market remains in an upward trend.
It appears that traditional investors, who have become more involved with Bitcoin ETFs in recent years, are hesitant to push RSI above 70-75. They tend to sell if the asset appears overbought.
Fibonacci Analysis suggests higher price targets
The Fibonacci analysis helps to understand Bitcoin’s price trajectory. On the daily chart, the key levels include: 1.618 extension ($105,218); 2.618 extension ($112,559); 3.618 extension ($119,900); and 4.236 extensions ($124,436).
Key Levels for Bitcoin Bullish reversal
BTC must reclaim $93,000 to re-establish a bullish trend. This level has been a recent resistance. If you break above this level, you could move towards $100,000, which is the 1.618 Fibonacci Extension.
If current levels are not maintained, the price could drop to $74,000 in 2 years. This level has historically acted as a strong floor of support.
The On-Balance volume (OBV), however, shows a significant decline in Bitcoin (BTC) inflows. This indicates that investors are cautious.
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