Bitcoin (BTC) started the month with the deepest retracement of the cycle, falling to the $56,000 support level. The tracking has raised alarm among some cryptocurrency investors and market observers who fear the bull market is over.
Since then, the largest cryptocurrency by market capitalization has recovered important levels and analysts have seen a bullish pattern on BTC charts, suggesting it may finally be coming out of the crisis.
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Is Bitcoin out of danger?
As tracking progressed on May 1, cryptocurrency analyst Rekt Capital highlighted the similarities between Bitcoin’s performance following its 2016 and 2024 halvings. He suggested that the price changes in the flagship cryptocurrency were “not surprising” as they reflected the “Bitcoin halving risk zone” of 2016.
According to analysts, the “risk areas” are: officially Above, BTC “celebrates a good bounce from the low support of the re-accumulation range.” He said May could be a “low-profile” month for the largest cryptocurrency and could potentially continue into next month. However, Bitcoin is “one month short” before the “parabolic phase” of this cycle begins.
Rekt Capital also believes that BTC’s selling momentum is starting to show signs of slowing down, “developing a slow curl towards the $60,000 support.” According to the post, Bitcoin needs to continue holding this support area for the curl to “proceed and eventually rise.”
BTC's curl pattern developing. Source: Rekt Capital
Likewise, analyst Bluntz identified a bullish encroachment pattern on Thursday, considering there will be “solid encroachment at the end of the day.” To the analyst, it appears that “the next push for ATH has begun.”
This morning Bluntz confirmed the pattern formation and announced to his followers that round 2 of this cycle has begun and will lead to a “fresh ATH.”
BTC’s Strength Could Drive Price into Six Figures
Following the bullish analysis, CryptoJelle said BTC “looks good.” According to his post, the cryptocurrency has “almost completed a complete reset” as it has returned to its 100-day exponential moving average (EMA).
Additionally, the chart display A “bullish MACD crossover” below the zero line and “the first high low in a long time” appear, suggesting a positive divergence.
Jelle highlights that the price of BTC is pushing back towards the trend line that “has pushed prices lower over the past few weeks.” Despite the higher lows, he points out that the $63,000 support area needs to be regained before new highs are reached.
In response to these new highs, he sets a BTC price target of $82,000, suggesting a six-figure price for the flagship cryptocurrency is possible during this cycle.
#Bitcoin The past few weeks have once again been pushing the downward trend line in price.
The low appears to have moved higher, but a clear break above $63,000 is still needed.
Cut through the city until that happens.
Stick to your plan. pic.twitter.com/ClTuv8QmhO
— Jelle (@CryptoJelleNL) May 13, 2024
analyst emphasize Bitcoin’s performance this cycle suggests that the community underestimated its strength during the bull market. He believes the run is far from over, as the “halving” event occurred just a few weeks ago and BTC’s price remained entrenched near the all-time highs of the previous cycle for an extended period of time.
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On Monday, Bitcoin surged to $63,000 after hovering between $60,000 and $61,000 for the past few days. Despite recent short-term negative performance, BTC’s price is still up 25.7% and 76.5% over three and six months, respectively.
As of this writing, BTC is trading at $62,752, up 3% in the last 24 hours.
BTCis performance in the three-day chart. Source BTCUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
Source: NewsBTC.com