Bitcoin (BTC) started the month with the deepest pullback of the cycle, falling to the $56,000 support level. The pullback raised alarm bells for some cryptocurrency investors and market watchers who feared the bull run was over.
Since then, the largest cryptocurrency by market capitalization has regained key levels, and analysts have identified bullish patterns on the BTC chart, suggesting it may finally be out of the woods.
Is Bitcoin out of danger now?
As the May 1 retracement unfolds, cryptocurrency analyst Rekt Capital highlighted the similarities between Bitcoin’s 2016 and 2024 post-halving performance. He suggested that the flagship cryptocurrency’s price development “was not a surprise” as it reflected Bitcoin’s “post-halving danger zone” in 2016.
According to the analyst, the “danger zone” is yes officially over, which BTC “celebrates with a good bounce from Low Re-Accumulation Range support.” He he stated that May could be an “extraordinary” month for the largest cryptocurrency and will potentially continue next month. However, Bitcoin is “running out of extraordinary months” before the “parabolic phase” of this cycle begins.
Additionally, Rekt Capital believes that BTC sales momentum is starting to show signs of slowing down, “slowly developing an uptrend away from the $60,000 support.” According to the post, Bitcoin must continue to hold this support zone for the collapse to “progress and eventually recover.”
BTC's curl pattern developing. Source: Rekt Capital
Likewise analyst Bluntz identified a bullish take pattern on Thursday, given that there will be a “solid takeover” at the close of the day. It seemed to the analyst that “another rally towards ATH has begun.”
This morning, Bluntz confirmed the pattern is forming and announced to his followers that the second round of this cycle has begun, which will lead to a “fresh ATH”.
BTC’s strength could drive the price to 6-digit values
Following a bullish analysis, CryptoJelle said BTC “looks good.” According to his post, the cryptocurrency has “almost completed a full reset,” returning to its 100-day exponential moving average (EMA).
Additionally, a chart shows “MAD bullish cross” below the zero line and “first higher low in a long time,” suggesting positive divergence.
Jelle emphasizes that the BTC price is once again approaching the trend line, which “has caused prices to decline in recent weeks.” Despite the higher low, it indicates the need to break the support zone at $63,000 before up-to-date highs appear.
With these up-to-date highs, he set a $82,000 price target for BTC, suggesting a six-figure price is possible for the flagship cryptocurrency this cycle.
#Bitcoin it is once again entering the trend line that has caused prices to decline in recent weeks.
It looks like a higher low has been reached, but we still need to break $63,000 convincingly.
Cut through the city until it happens.
Keep the plan. pic.twitter.com/ClTuv8QmhO
— Jelle (@CryptoJelleNL) May 13, 2024
Analyst underlines Bitcoin’s performance this cycle, stating that the community underestimated its strength during this bull market. He believes that the streak is not over, as the “Halving” event took place just a few weeks ago and the BTC price has long consolidated around the highest level in the history of the previous cycle.
Bitcoin’s price rose to $63,000 on Monday after hovering between $60,000 and $61,000 for the past few days. Despite recent results showing short-term red numbers, BTC price still saw gains 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, 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
