Caleb Franzen, senior market analyst and strategist at Cubic Analytics, shared his views on the direction Bitcoin might move on Twitter. Franzen believes that the price of the largest cryptocurrency is heading towards $14,000 and could drop further.
Franzen also shared his BTC chart, where he highlights an area where he thinks Bitcoin is currently advancing, basing it on previous BTC lows. Stating that this region functions as a “magnet for Bitcoin,” the analyst added that this means a target between $11,400 and $13,900 for BTC.
“I still think that the teal box is a magnet for #Bitcoin, implying a target of $11.4k to $13.9k.”
Franzen claims that this target is the level at which Bitcoin price closed in December 2017, the peak of this cycle. Also, the same level acted as resistance at $13,900 exactly in 2019. According to the analyst, this has convinced him that the BTC price has set this level as a target. However, he acknowledges that this could happen and is not an exact prediction:
“I get reassurance about this target because it was the monthly close from December 2017, the peak of the former cycle. This level also acted as resistance in 2019, perfectly at $13.9k. Will it absolutely fall to this level? No. Could it. Yes. Same target I’ve shared since June”
Bitcoin has been trading in the $16,800 range since December 14. That day, the US Federal Reserve announced another 50 basis point rate hike, this time meeting analysts’ expectations.