Cryptocurrency analyst Joao Wedson, in his statement evaluating Bitcoin’s current price cycle, pointed out critical levels for the market.
According to Wedson, the most interesting Bitcoin Power Law model suggests that the resistance zone lies in the $118.9k to $120k range.
Wedson argued that for Bitcoin to break above these levels, it would need to break through a threshold previously identified as the “Alpha Price,” which was previously stated to be above $119,300. According to the analyst, breaking above this level is only possible after a period of consolidation and the elimination of overly optimistic investors from the market.
“Once that happens, the doors to higher levels will be wide open,” Wedson said, noting that the potential peak level for this cycle could be in the $143,000 to $146,000 range.
At the time of writing, Bitcoin is trading at $117,598, up 8.89% in the past week. The total cryptocurrency market capitalization, including the recent surge, is hovering around $3.66 trillion.
*This is not investment advice.