Bitcoin Is Fine As Long As It Holds Above $49,000: Analyst
01 Maio 2024 - 3:30PM
NEWSBTC
Despite Bitcoin’s 13% drop in the past week, which saw it break
below the psychological $60,000 level and drop 20% from its
all-time highs, one analyst on X remains resolute. Drawing from the
weekly chart, the trader maintains a bullish outlook, saying
the coin will shake off weakness in the coming session. This aligns
with bulls for the better part of Q4 2023 and Q1 2024. Bitcoin Is
Falling, Losses $60,000 Bitcoin is under intense liquidation
pressure, struggling against the deluge of sellers. Earlier today,
BTC broke below $60,000, melting below April 2024 lows. Related
Reading: Bitcoin Price Dips Below $57,000: 4 Key Reasons This dump
confirmed sellers of April 13, signaling a possible start of a bear
formation that may see BTC lose ground, peeling back February and
March 2024 gains. Nonetheless, the analyst maintains that the
uptrend will remain as long as Bitcoin stays above the $49,000 to
$52,000 support zone, soaking up all selling pressure. This
assessment, based on candlestick arrangement, can serve as a
reassurance to BTC holders. The trader maintains that despite the
sell-off, panic is unwarranted at this point. Referring to
the Elliott Wave Principle, a technical analysis indicator, the
analyst points out that the coin is simply pausing. For those
with a more aggressive trading strategy, the dip, ideally towards
the above support zone, could present an opportunity to buy on dips
in anticipation of Wave 5. Currently, the
analyst notes Bitcoin is in Wave 4, a stage that will
take approximately the same time as Wave 2. Then, prices dumped
after a brief rally, peaking in May 2023. However, prices
rally in Wave 3, pushing prices below $30,000 to fresh all-time
highs, peaking at $73,800. The drop from all-time highs to spot
rates, looking at the Elliot Wave Theory, could indicate that
prices are in Wave 4 before the eventual leg up, ending at Wave
5. What’s Next? Will BTC Breach $100,000 In Wave 5?
Even so, when BTC will bottom up remains to be known. As
things stand, the analyst said traders should watch two exponential
moving averages (EMAs) of the 21 and 50 periods. A retest of these
dynamic levels could offer support, preparing traders to buy on
dips in anticipation of the final Wave 5. Related Reading:
Machine Learning Algorithm Predicts Dogecoin Price For May 2024
However, the analyst didn’t lay out the next possible target even
from the chart. Still, if Wave 3 is around the same length as
Wave 5, Bitcoin has a strong chance to surpass
$100,000 after the current volatile price action ends. Feature
image from DALLE, chart from TradingView
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