As Bitcoin (BTC) attempts to reclaim the $84,000 barrier again, the flagship crypto risks closing the Month in red numbers. Some analysts suggest that BTC’s Q2 performance could mimic its 2017 rally. Related Reading: Ethereum Price Confirms Breakout From Ascending Triangle, Target Set At $7,800 Bitcoin Retests $84,000 A week ago, Bitcoin saw a star-of-week pump to retest the $88,000-$89,000 resistance zone. The flagship cryptocurrency surged to a two-week high of $88,765, hovering between the $85,000 to $88,000 price range for most of the week. However, as the weekend approached, BTC lost its range, falling to $84,000 on Friday and continuing to dip over the next two days. Bitcoin saw an 8.2% weekly drop during the early Monday hours, hitting $81,278 before recovering. After hitting its lowest price in two weeks, the largest crypto by market capitalization bounced from the range lows, nearing the key $84,000 barrier again. This zone has been a crucial resistance level since Bitcoin lost its post-November breakout range a month ago. Since then, BTC has failed to maintain this level for significant periods. Amid the market correction, trader Daan Crypto Trades noted that Bitcoin has created another CME Gap, becoming the fifth consecutive week that a gap has been created due to price movement during the weekend, with all the previous ones being closed “relatively quickly.” This week’s CME gap, between $82,500 and $84,100, was almost filled after this morning’s rally. However, analyst Rekt Capital pointed out, “BTC will need to rally more than that to try to seriously challenge for a reclaim of the recently lost Higher Low,” at around $85,000. BTC To Consolidate For Longer? Ted Pillows suggested BTC’s performance could see a Q2 recovery based on its 2017 price action. The analyst highlighted that during US president Donald Trump’s first term, Bitcoin’s “real rally” didn’t start until 2017’s second quarter. Per the post, “BTC’s real gains during Trump’s first presidency started after Q1 2027. For the first two months, BTC just consolidated in a range similar to now.” Then, it started to gain momentum in April, pumping from $1,400 to $20,000 until December 2017. Ted considers that if Bitcoin continues to follow its 2017 path, it could see a massive rally toward a new all-time high (ATH) later this year. It’s worth noting that Q2 has historically been mostly favorable for BTC, CoinGlass data shows. Meanwhile, Rekt Capital also suggested that Bitcoin will likely continue consolidating a little bit longer after the recent price correction. The analyst pointed out that BTC failed to confirm its breakout from its triangular market structure. He previously explained that, over the past six weeks, BTC has been consolidating between the two biggest bull market Exponential Moving Averages (EMAs), the 21-week and 50-week EMAs, in a “very similar fashion to mid-2021.” Related Reading: XRP & These Altcoins Share The Same TA Fate—What’s Coming? The analyst added that in mid-2021, “Bitcoin didn’t break from this similar triangular market structure right away either, upside-wicking towards and into the 21-week EMA but ultimately rejecting from there to experience additional consolidation between the two EMAs.” This could suggest that the flagship crypto “is sentenced to a bit more consolidation between the two EMAs” before attempting to “kickstart an uptrend continuation towards the Re-Accumulation Range Low of $93,500.” As of this writing, Bitcoin is trading at $83,297, a 1% increase in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
This week’s market correction has seen Bitcoin (BTC), the largest cryptocurrency by market capitalization, retest some of its key support levels. As the price starts to recover from the recent lows, some analysts consider the weekend might bring some bullish relief for investors. Related Reading: Ethereum Drop Coming? ETH Risks Fall To $2,180 If This Support Fails – Analyst Bitcoin Recovers From $78,000 Drop Bitcoin has experienced significant selling pressure over the last week, fueling doubts about a potential market top. The flagship crypto has dropped 21% from last week’s high of $99,000, dipping below the $80,000 level for the first time since November. The correction also saw BTC drop nearly 30% from its January all-time high (ATH) and trade below its post-US election price range. A week after the market bleeding started, Bitcoin hit a new three-month low, retesting the $78,000 support on Friday morning. Various market watchers noted that BTC’s most recent decline reached and partially filled its November 2024 CME Gap between $78,000 and $80,700. Rekt Capital pointed out that Bitcoin is experiencing a “strong rebound against the partially filled CME Gap and is doing so on above-average seller volume.” The flagship crypto has surged around 7% from today’s lows, hovering between the $83,000 and $84,000 support zone for the past few hours. To the analyst, the CME Gap support and sell-side volume will be two key indicators to pay attention to over the weekend as constant, uninterrupted BTC sell-side pressure is unsustainable, and seller exhaustion potentially accelerates in the next few days. Bitcoin is finally starting to experience above-average seller volume. There’s still scope for more seller volume to come in, but the chances of Seller Exhaustion occurring are increasing. And Seller Exhaustion tends to precede price reversals. Is A Weekend Rebound Coming? Crypto analyst Jelle highlighted that Bitcoin has done “three drives in deeply oversold territory” this week and is retesting the local lows before today’s drop, which suggests that a “weekend relief seems likely.” The analyst stated that reclaiming the $84,500 support is key for BTC’s recovery as “the past two retests ended up resulting in new lows.” Nonetheless, he noted that today’s rebound seems different due to BTC “touching the 200-ema cluster” for the first time this week and breaking above it. To Jelle, this could signal an “interesting weekend,” with the new CME Gap at $93,000 open. Rekt Capital pointed out that Bitcoin “has filled every CME Gap that has formed since mid-March 2024” and that only the newly formed CME Gap between $92,800 and $94,000 remains open after this retrace. If BTC continues this pattern, the price could see a rebound to fill the new gap soon. Related Reading: Memecoin Scam Alert: Pump.Fun X Account Hacked, Promotes Fake PUMP Token The analyst has outlined two potential scenarios for BTC’s current “downside deviation.” According to the post, Bitcoin’s price could revisit $93,500 by the end of the week if the deviation “is to end up as a downside wick.” Meanwhile, if the deviation is “to end up as the Post-Halving deviation featuring Weekly Candle Closes below the Re-Accumulation range,” BTC’s price could revisit the $93,500 level in the next two to three weeks as “part of a post-breakdown relief rally.” As of this writing, Bitcoin trades at $85,120, a 0.5% increase in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com