Bitcoin (BTC) has been on a roller coaster for weeks. However, the largest cryptocurrency in the market looks poised to cross the $30,000 mark again if it continues its bullish momentum. Nevertheless, cryptocurrency experts are eyeing an important technical price level that could indicate further volatility for the world’s most popular cryptocurrency.
According to according to crypto expert and economist Mr. Ben Lilly, the price level of $24,000 is acting as a bull’s-eye for Bitcoin, indicating a possible price drop in the coming months. Lilly’s analysis is based on Bitcoin’s 200-day moving average (200d MA), which he says is a key technical indicator of the cryptocurrency’s price cycles.
Bitcoin is bracing for volatility
Each Bitcoin halving cycle, which occurs approximately every four years, begins with the failure of the 200d moving average (MA), as shown in a chart shared by Lilly. This failure tends to dictate multi-year pricing cycles, and Lilly believes history is repeating itself.
Based on this theory, Lilly predicts that the 200d MA level failure could happen sometime between June and August 2023, which could result in a dip below $24,000. This prediction is supported by the fact that low-leverage liquidity pools are building up to where the 200d MA is likely to be in June, which Lilly has marked with a bullseye in its theoretical analysis.
If the history of Bitcoin’s price cycles is any guide, this retest is likely to fail, which could result in further volatility for the cryptocurrency. Lilly expects that won’t happen with the late June options, citing the recent termination of contracts in May as a subtle drop.
However, it is important to note that the 200d MA is rising faster than before as each passing day removes a day from November’s lows and replaces it with a recent price. This acceleration has been seen over the past week on the 200d MA, which is ticking up faster.
Still moving towards higher prices?
On the other hand, despite the recent volatility in the cryptocurrency markets, one expert remains optimistic about Bitcoin’s long-term prospects. Cryptocurrency analyst and trader Jackis believes that current market conditions indicate a long re-accumulation period before Bitcoin moves higher.
According to Jackis, Bitcoin is still making higher lows and is especially critical moving averages, which is a positive sign for the cryptocurrency’s long-term growth. While there may be short-term downsides, Jackis believes these are simply shakeouts and the big picture remains optimistic.
Jackis sees a big step coming in the future, which he already indicated in previous posts. His stakes remain on the upside and he sees no clear signs of bearishness in the market right now.
One major factor Jackis refers to is the monthly close, which recently happened with a sweep. This provides the largest market image; for now, Jackis sees no bearish signs.
At the time of writing, BTC is currently trading at $26,900, filling the gap on the Chicago Mercantile Exchange (CME), previously marked by NewsBTC as a critical level to observe before the uptrend could continue. Nevertheless, there is still a chance of further downward moves, with many industry experts expecting high levels of volatility.
Featured image from iStock, chart from TradingView.com
