A prominent market analyst counters fears of Bitcoin (BTC) entering an extended decline.

The analyst utilizes historical price models to indicate that the current market weakness reflects a standard pause within a broader upward trend, suggesting Bitcoin could exceed $300,000 in the future.

The Case for Continued Bullish Momentum

In a post dated October 24 on X, EGRAG CRYPTO highlighted a linear regression model on a logarithmic scale, providing insights into long-term trends. The analysis shows that Bitcoin is trading at its lowest point relative to its historical trend channel since 2012. Instead of signaling a downturn, the analyst regards this as a prime opportunity to buy, resembling patterns observed before significant price surges in past cycles.

“Historical Data Never Lies,” wrote EGRAG. “Every single macro cycle in Bitcoin’s history shows the same pattern: BTC consolidates inside an ascending (rising) channel before breaking out massively to the upside.” (Translation: Historical data consistently reveals that Bitcoin often consolidates within an upward trend prior to substantial increases.)

EGRAG pointed out that this pattern has repeated at least three times previously and is currently poised to arise again. According to this analysis, a return to the channel’s midline could imply a price around $175,000, while the upper limit might reach $250,000 to $300,000.

This perspective directly opposes cautions raised by others, including Dr. Profit, who warned in a previous report that a fall below $101,700 would confirm the start of a bear market.

Observers like Axel Adler Jr. have also expressed optimism for recovery. Earlier today, he pointed out that the price has remained above a crucial level of $109,800, indicating that a plethora of bearish short positions might facilitate a significant upward movement once volatility eases.

Additional Insights

CoinGecko reports Bitcoin trading at approximately $111,355, rebounding from a sharp decline last week that saw it plummet below $105,000. While the leading cryptocurrency is down about 8% over the last two weeks, it has surged more than 6% in the past week.

Macroeconomic Factors and Market Sentiment

Recent market analysis by investment firm VanEck indicates that the price drop in October does not signify the embrace of a bear market but reflects a ‘liquidity-driven mid-cycle reset.’ The analysis reaffirms that the growth of the global money supply, or M2, remains a vital determinant for Bitcoin’s long-term worth.

This sentiment parallels the response from traditional markets. According to Adler, the S&P 500 is signaling a ‘risk-on’ phase, suggesting that where stocks exhibit stability, crypto may benefit. Additionally, crypto podcaster Luke Martin highlighted data that after major sell-offs, such as on October 10, Bitcoin historically rebounds by an average of 25% over the following 90 days, hinting at a bullish environment.