Bitcoin’s price action has been on a downward slope recently, dipping to a low of $112,770 within the past 24 hours. The decline is enough to cause some concerns among short-term traders, but sentiment across the broader crypto community is still overwhelmingly optimistic.
Among the voices still calling for higher prices is technical analyst Merlijn The Trader, who gave an update on what he calls the “Bitcoin Market Maker Model,” identifying not only where the price is headed but also the ideal zone to take profits before it’s too late.
The Final Parabolic Move
Merlijn’s technical analysis model shows that the current structure on Bitcoin’s long-term chart mirrors a repeating market maker pattern. According to his model, BTC is entering the final parabolic phase of the current cycle with a strong upward surge, followed by an abrupt collapse. In his words, “The crowd will rush in. The pros will exit.”
In a previous analysis, the analyst pointed to an inverse head and shoulders pattern forming on the 3-day candlestick timeframe that will push Bitcoin to as high as $145,000 in the coming months. In another analysis, he noted that Bitcoin is on track to reach as high as the $250,000 to $300,000 range over the coming year.
Now, in this analysis, the analyst is giving the best time or zone to take profit when this predicted parabolic rally finally rolls into place. The chart attached to his post shows a distinct green box that represents the last profit-taking zone before the market turns over. This box puts the profit-taking zone between $160,000 and $190,000, and it is the final part of the pattern, similar to the one seen in 2021.
The visual includes a sequence of accumulation (gray), breakout (blue), euphoria (green), and exhaustion (red) phases that have always played out in previous Bitcoin cycles. Merlijn’s assertion is that Bitcoin is now moving back into the green zone, preparing for that same euphoric surge that characterized the tail end of previous bull runs. He describes this phase as the “profit zone.” Furthermore, the analyst urged investors to secure gains before the inevitable post-rally correction kicks in.
Bitcoin Dips Below $113,000, But Bullish Outlook Intact
Bitcoin’s recent drop below $113,000 follows a gradual decline over the past several days below $115,000. This, in turn, has allowed the Bitcoin price to decline by about 3.4% in the past seven days. Despite this short-term weakness, market sentiment among analysts is still optimistic. Many analysts, like Merlijn The Trader, see the current correction as part of a consolidation phase, not a reversal of the long-term trend.
The prevailing view is that BTC is still poised for higher targets in the coming months, with analysts predicting a parabolic move that could push its price far beyond its current all-time high of $122,838 which it registered just 23 days ago. At the time of writing, Bitcoin is trading at $113,990.
Featured image from Pixabay, chart from Tradingview.com
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