Bitcoin Bottom In? Retracement From $73,800 Is Deeper And Took Longer To Form
03 Maggio 2024 - 10:00PM
NEWSBTC
Some analysts were frightened by the recent drop in Bitcoin prices.
Though the coin is showing signs of strength, multiple leveraged
longs were liquidated early this week. In a post on X, one
analyst thinks Bitcoin might have just found support,
bottoming up after the contraction this week, pushing it lower from
the multi-week range established in mid-March through to the better
part of April. Bitcoin Retracement Is Deeper And Took Longer:
Bottom In? Expressing confidence, the analyst cited a historical
pattern. Based on a price action assessment in the weekly chart,
the analyst notes that whenever Bitcoin posts a deep retracement,
there is usually a higher probability of the coin bottoming up and
shaking off weakness. Related Reading: Bitcoin Update: $120 Million
Futures Liquidated As Price Takes A Beating At the same time,
prices tend to recover after a retracement that takes longer than
expected. Building on their historical pattern observation,
the analyst applied it to the current BTC situation. The trader
said up to the current level, the retracement from an all-time high
is deeper and also took longer than usual, spanning several weeks.
As a result, the analyst projected a high likelihood that Bitcoin
prices might have found a bottom. While confidence abounds,
it is still challenging to pick bottoms. Bitcoin and crypto assets
are volatile, with prices moving quickly in either direction. At
spot rates, Bitcoin is trading above $60,000, reversing losses of
May 1. Even though this might cement the analyst’s position, BTC
remains within a bear breakout formation, defined by the
wide-ranging, high-volume bear bar of April 30. Moreover, the coin
is still boxed away from the April trade range, suggesting that
weakness remains. Should there be a conclusive close above $62,000,
the trend will likely shift in favor of bulls, reversing the losses
of April 30. Related Reading: Why This Crypto Bull Run Might Not
Live Up To The Past: Analyst Before then, aggressive traders might
be unloading at higher prices, aligning with the current bearish
formation. Market Forces Will Shape BTC Prices Despite the bearish
outlook, most analysts are bullish, expecting a sharp price
recovery. One of them took to X, suggesting that buyers
will likely take charge if prices recover from spot rates and
return to the horizontal range of March to April. The pace and
direction at which prices move going forward lean on
market factors. So far, spot Bitcoin exchange-traded fund (ETF)
issuers are decreasing their holdings. At the same time, the United
States Federal Reserve is tracking inflation and other metrics as
they tune monetary policy. If inflation drops, the USD will likely
strengthen, heaping more pressure on the world’s most valuable
crypto. Feature image from Shutterstock, chart from TradingView
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