The Bitcoin market has seen some intriguing movements recently. After enduring steep corrections in late July, the digital asset has traced a modest recovery in the past week, rising by 2.73%. This uptick, as noted by CoinMarketCap, has brought Bitcoin into the $116,000 price region. However, this resurgence hasn’t come without its challenges; further rejections in price have left analysts and traders speculating about the cryptocurrency’s next significant move. As the market digests this latest phase, cumulative trading activity hints at the potential for a major price surge towards a new all-time high.
Golden Ratio In Sight: Bitcoin Targets $131K After Volume Shelf Hold
In a recent X post from August 8, well-known financial market analyst Donald Dean weighed in with an optimistic price prediction for Bitcoin. His analysis is grounded in the concept of a volume shelf visible on the BTCUSDT daily chart. For those unfamiliar with trading jargon, a volume shelf is a price level where significant trading activity has taken place. Typically illustrated as horizontal bars on a chart, these volume shelves act as strong support or resistance zones because they signify price levels where many traders have entered or exited positions.
According to Dean’s insights, Bitcoin currently hovers within a volume shelf between $116,000 and $118,000. This range is crucial as it could serve as a launching pad for a notable price increase. If Bitcoin manages to consolidate above this level, it might indicate robust buying interest, potentially functioning as a springboard for the next upward leg.
Dean further anticipates that this accumulation phase could generate the momentum necessary to push Bitcoin toward the 1.618 Fibonacci extension level, a technical milestone popularly referred to as the “golden ratio.” This pivotal price target sits around $131,000, which could represent a substantial 12.93% gain from current market levels.
Bitcoin Market Overview
At the time of writing, Bitcoin is trading at $116,756, showing a slight decline of 0.02% over the past 24 hours. On another note, the trading volume has experienced a decline of 20.97%, now valued at $55.24 billion. But despite this minor dip in volume, market sentiment remains reassuringly bullish.
Data from CoinCodex corroborates this optimism, with the Fear & Greed Index currently sitting at 67, indicating a strong sense of bullish sentiment among investors. Nevertheless, analysts are projecting that Bitcoin will likely remain range-bound in the near term, estimating prices of around $117,167 in five days and $115,980 in thirty days. Some projections even suggest a potential dip to $112,688 over the next three months, emphasizing the volatility that characterizes the cryptocurrency market.
