Bitcoin (BTC) began the month with the deepest retracement of the cycle, falling to the $56,000 support level. The retracement alarmed some crypto investors and market watchers, who feared the bull run was over.
Since then, the largest cryptocurrency by market capitalization has recovered to crucial levels and analysts have identified bullish trends on the BTC chart, suggesting it may finally be out of the woods.
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Is Bitcoin out of danger?
As the May 1 retrace developed, crypto analyst Rekt Capital Underlines similarities between Bitcoin's post-halving performance of 2016 and 2024. He suggested the flagship cryptocurrency's price action was “no surprise” as it reflected the “Bitcoin danger zone post-halving” of 2016.
According to the analyst, the “danger zone” is officially more, that BTC “celebrates with a good rebound from Re-Accumulation Range Low support”. He declared this May could be a “mundane” month for the largest cryptocurrency, and could continue into next month. However, Bitcoin is “running out of mundane months” before the “parabolic phase” of this cycle begins.
Additionally, Rekt Capital considers that BTC sales momentum is starting to show signs of slowing, “slowly developing a loop against the $60,000 support.” According to the message, Bitcoin must continue to maintain this support zone for the loop to “progress and eventually recover.”
BTC's curl pattern developing. Source: Rekt Capital
Likewise, analyst Bluntz identified a bullish engulfing trend on Thursday, given that there would be “a solid engulf at the daily close.” To the analyst, it appeared that “the next push towards the ATH had begun.”
This morning, Bluntz confirmed the formation of the pattern and announced to his followers that this cycle 2nd round has started, which would lead to a “new ATH”.
BTC strength could drive price to 6 figures
Following the bullish analysis, CryptoJelle said that BTC is “looking good.” According to his post, the cryptocurrency “nearly completed a full reset” as it returned to the 100-day exponential moving average (EMA).
Additionally, the graph poster a “MACD bullish crossover” below the zero line and the “first higher low in a long time,” suggesting positive divergence.
Jelle points out that the price of BTC is once again within the trend line that “has driven prices down over the past few weeks.” Despite the low, it highlights the need to reclaim the $63,000 support zone before new highs arrive.
For these new highs, he set a target of $82,000 for the BTC price, suggesting that a 6-figure price for the flagship cryptocurrency is possible during this cycle.
#Bitcoin is heading towards the trendline that has driven prices lower over the past few weeks – once again.
It looks like a higher low has been made, but we still need to convincingly break through $63,000.
Cut off the city until this happens.
Stick to the plan. pic.twitter.com/ClTuv8QmhO
– Jelle (@CryptoJelleNL) May 13, 2024
The analyst underlines Bitcoin's performance this cycle, indicating that the community underestimated its strength during this bull run. He considers that the race is not over, since the “Halving” event occurred only a few weeks ago and the BTC price has long been consolidating around the all-time high of the previous cycle.
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Bitcoin surged to $63,000 on Monday after hovering between $60,000 and $61,000 in recent days. Despite its recent performance showing red numbers in the short term, the BTC price still recorded an increase of 25.7% and 76.5% over the three and six month periods, respectively.
At the time of writing, BTC is trading at $62,752, an increase of 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