Bitcoin‘s recent volatility may have worried investors, but experts are not panicking. Analyst Caleb Franzen states that these declines are not different from past situations and that Bitcoin has the potential to recover. According to Franzen, Bitcoin could reach $175,000 in this cycle, which could also trigger a rise in other cryptocurrencies.
Critical Stage for Bitcoin
Recently, Bitcoin fell below long-term moving averages, causing concern among investors. Cryptocurrency analyst Caleb Franzen is closely monitoring this situation. Franzen analyzes Bitcoin’s performance since late 2022 and notes that the current declines below long-term averages could be perceived as a negative signal in the market.
However, Franzen emphasizes that these declines are not a cause for panic. He recalls similar declines in the past and notes that Bitcoin has quickly recovered each time.
Bear Market or Temporary Pause?
Franzen explains Bitcoin’s potential with a simple analogy: When Bitcoin trades above moving averages, it can experience a strong rise. However, Franzen warns that caution is needed, as the first attempt may not be successful and could result in a short-term decline.
Franzen notes that bear markets are characterized by prices trading below long-term averages, which is not positive for the overall market outlook.
Bitcoin Could Easily Reach $175,000
According to Franzen, Bitcoin falling below short-term moving averages is a common occurrence in every bull market. These declines usually result in a quick recovery, and despite the challenges, Bitcoin continues its upward trend.
Franzen predicts that after this recovery process, Bitcoin could reach the $175,000 level. Using the Fibonacci extension method, Franzen states that if Bitcoin reaches this level, other major cryptocurrencies like Ethereum and Solana could also see significant gains.
