Unveiling Crypto Market Insights - Wen $100k

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Hi Market Enthusiasts!

Bitcoin approached the 100k price mark and is experiencing its first decrease in momentum after four consecutive green weeks. In this post, we'll examine where we stand in the four-year cycle and the significance of the pivotal 100k milestone for Bitcoin.

Bitcoin position in the 4 year cycle
In our post about Bitcoin cycles, we highlighted its cyclical nature and noted that the bull phase typically lasts about 150 weeks. Currently, we are in week 108 of this cycle's bull phase, suggesting there could still be some positive price action ahead.

Importance of the 100k Price Level
We have discussed the importance of round numbers in one of our posts. Round numbers like 100k often act as psychological barriers, influencing trader behavior. These levels frequently serve as key support or resistance points, prompting many to take profits or adjust orders strategically. In his book Technical Analysis of the Financial Markets, John J. Murphy highlights the importance of caution when trading near such levels: "Traders aiming to sell on a bounce should set resting sell orders slightly below round numbers. Conversely, when setting protective stops on existing positions, it's wise to avoid placing them at obvious round numbers."

Correction
Bitcoin experienced its first correction after four consecutive weeks of gains, initially dropping 10% before recovering most of the loss to close the week with a 1% decline. In previous bull runs, Bitcoin corrections ranged from 10-30%, and in some cases, even more. The duration of corrections can vary, lasting anywhere from a few days to several weeks.

Do you think the correction is over? If not, how long do you expect it to last, and how deep could it go?

When do you think Bitcoin will test the 100k level again?

Let us know in the comments