• Bitcoin price has experienced a fresh bearish action recently as it dropped heavily below $27,000 but is trying hard to reclaim the levels back.
• Historical data suggests that Bitcoin may soon test its all-time highs within 120 days.
• Technical analysis indicates that a wider price action is fast approaching, and BTC could reach its ATH within 3 to 4 months.
Overview of Bitcoin Price Analysis
The cryptocurrency market has been experiencing turbulent times with Bitcoin (BTC) bouncing between bullish and bearish phases. Recently, Bitcoin displayed a giant recovery from the lows below $20,000 to as high as $28,900; giving hope for an upcoming rally that may mark the highs close to its all-time high (ATH). This article looks at whether or not it is possible for BTC to retest its ATH in the next 3-4 months through technical analysis.
Bitcoin Price Trend
Considering historical performance, BTC maintains a periodic trend that repeats very often due to events like halving which curbs inflation by reducing miner’s rewards. Looking at the 6-week Bollinger band theory, popular analyst Tony „The Bull“ believes that the price may reach its ATH within 3-4 months or around 120 days.
Technical Analysis of Bitcoin Price
From technical perspective, Bitcoin has displayed a wider price action in times of acute sell-off in January and February 2021. The currently low BTC price indicates that this rebound could be the beginning of an upcoming rally which may lift the price close to its ATH level again. Historically, each time the price reaches these highs it rebounds daily from lower to average levels of the Bollinger Band before rallying above them again – if this pattern continues then we can expect a notable upswing for BTC soon enough.
Although previous history does not necessarily dictate future performance, data gathered from technical analysis suggests a wider price action is fast approaching and it is possible for BTC to retest its ATH in 3-4 months if current trends continue.