Is This Cycle’s Bitcoin Bottom In? Analysts Forecast BTC Bounce Back
02 May 2024 - 8:00AM
NEWSBTC
As May 1st started, Bitcoin (BTC) faced a new correction that made
the price stumble under the $60,000 support level. The flagship
cryptocurrency has seen several retraces during this bull cycle,
with BTC swiftly recovering the crucial support zones each time.
However, in the past 24 hours, the largest cryptocurrency by market
capitalization has struggled to regain its momentum. Some analysts
believe Bitcoin’s bottom this cycle might be in as this correction
officially became its deepest retrace. Related Reading: If History
Repeats, This Is How Bitcoin Price Will Perform In The Next 6
Months Is The Bitcoin Bottom Here? In the early hours of Tuesday,
Bitcoin started to plunge from the $64,000 price range. As the day
continued, BTC prolonged its fall to briefly trading around $59,958
– $59,191 before recovering. This time, the recovery didn’t last
long as Bitcoin’s price resumed its downward trajectory to $57,000.
In an X thread, crypto trader Milkybull examined some data
suggesting the bottom might finally be in. According to the
analyst, BTC is “following the 2017 PA.” This would suggest that
“either the bottom is in or close.” Moreover, he urged investors to
remember that while good news “usually signals the top,” bad news
signals a bull market’s bottom. In the thread, the trader pointed
out that the Bitcoin Bull Market Support Band indicator
historically serves strong support during BTC’s bull cycles. As a
result, he considers that the flagship cryptocurrency might “wick
through the support and bounce back.” 2024's Bitcoin Bull Market
Support Band indicator resembling 2017's. Source: MilkybullCrypto
on X According to the analyst, Bitcoin and global liquidity are
also strongly correlated, with BTC currently at a level it has
previously bounced back from. These bouncebacks initiated “huge
rallies across the crypto market” in October 2022 and October 2023.
Lastly, the thread highlighted that Bitcoin “is at a critical
decision point for the local bottom.” The trader considers that
while some call for a $48,000 bottom, the $51,000 support level
might be where BTC bounces back to resume its cycle to this cycle’s
top. Bitcoin’s Deepest Retrace This Cycle According to crypto
analyst and trader Rekt Capital, this correction has officially
been the deepest BTC retrace this cycle. Per the post, today’s
-23.64% retrace surpasses the -22.91% retrace seen in February
2023. The analyst also compared this cycle’s “Post-Halving”
pullback to 2016’s. Moreover, the trader considers that this
bullish cycle might be more similar to the 2016 one than investors
think. #BTC We are here (orange circle) And we've seen Post-Halving
pullbacks like this in the past (e.g. 2016)$BTC #Bitcoin
#BitcoinHalving pic.twitter.com/OvOcmJTzFk — Rekt Capital
(@rektcapital) May 1, 2024 Previously, Rekt Capital listed three
reasons these two cycles might be similar. Per the trader, the
resemblances include the “Pre-Halving Re-Accumulation Range
Breakout,” the “Pre-Halving Retrace Beginning,” and the “Similar
Initial Reaction after the beginning of the Pre-Halving Retrace.”
After today’s retrace, the analyst added the “Continued downside in
the three weeks after the Halving” as a fourth similarity between
the 2016 and 2024 cycles. Like eight years ago, Bitcoin faces an
“additional downside below the Range Low of its Re-Accumulation
Range” in the three-week window after Bitcoin’s “Halving.”
Moreover, the analyst suggests that the current price development
comes “as no surprise,” as it mirrors 2016’s “post-Halving Danger
Zone.” As of this writing, the flagship cryptocurrency is trading
at $57,794.89. This correction represents a 6.2% drop in the past
24 hours. Similarly, BTC is registering 13.4% and 17.7% price
decreases in the weekly and monthly timeframes. Related Reading:
Bitcoin Price Nosedives, Can Bulls Save The Key Support at $60K?
Bitcoin's price performance in the weekly chart. Source: BTCUSDT on
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