Bitcoin (BTC) experienced a fresh correction as the month of May started. The price fell below $60,000, the level that serves as a support. The BTC has experienced several retracements during the bull cycle. BTC quickly recovered from each retracement.
In the past day, however, Bitcoin, which is the most valuable cryptocurrency by capitalization, has been struggling to recover its momentum. Some analysts think Bitcoin may have reached the bottom of this cycle as this correction became its largest retracement.
Bitcoin: Is the bottom here?
Bitcoin began to trade in the early morning hours of Tuesday. plunge As the day continued, BTC extended its fall to briefly trade around $59,958 – $59,191 before recovering. As the day continued, BTC prolonged its fall to briefly trading around $59,958 – $59,191 before recovering.
Bitcoin price dropped to just $57,000. Crypto trader Milkybull posted a message on an X-thread. examined Some data suggests that the bottom may finally be in.
BTC, according to an analyst is “following the 2017 PA.” It would seem that “either the bottom is in or close.” He also reminded investors that good news is not always the best. “usually signals the top,” Bad news can signal the bottom of a bullish market.
The trader in the thread pointed out the Bitcoin Bull Market Support Band, which historically has served as a strong support for BTC bull cycles. He believes that this is why the flagship cryptocurrency You can also find out more about us on our website. “wick through the support and bounce back.”
Similarity between the 2024 Bitcoin Bull Market Support Band and 2017's. Source: MilkybullCrypto on X
The analyst also believes that Bitcoin is strongly linked to global liquidity, and BTC has recently bounced from a previous level. The bouncebacks began “huge rallies across the crypto market” In October 2022, and in October 2023.
Lastly, it was noted that Bitcoin “is at a critical decision point for the local bottom.” BTC may bounce back from the $51,000 resistance level, allowing it to complete its current cycle and reach this cycle’s peak.
Bitcoin’s biggest retrace this cycle
Rekt capital, a crypto trader and analyst, has confirmed that this is the most significant BTC correction this cycle. According to the postThe -23.64% decline today is higher than the -22.91% drop in February 2023.
Analysts also compare this cycle to previous cycles “Post-Halving” Pullback in 2016 The trader believes that the bullish cycle could be closer to 2016 than investors believe.
Here we are (orange circles)
We’ve seen pullbacks similar to this post-Halving in the past. 2016)$BTC #Bitcoin #BitcoinHalving pic.twitter.com/OvOcmJTzFk
— Rekt Capital (@rektcapital) May 1, 2024
Rekt Capital previously listed the three main reasons that these two cycles may be similar. According to the trader the resemblances Include the “Pre-Halving Re-Accumulation Range Breakout,” The following are some of the ways to get in touch with us. “Pre-Halving Retrace Beginning,” You can also read about the “Similar Initial Reaction after the beginning of the Pre-Halving Retrace.”
Analysts are retracing today after the retracement. added The following are some of the ways to get in touch with us. “Continued downside in the three weeks after the Halving” As a fourth likeness between the cycles of 2016 and 2024. Bitcoin is facing an uncertain future, just as it did eight years ago. “additional downside below the Range Low of its Re-Accumulation Range” In the 3-week period following Bitcoin’s “Halving.”
The analyst also suggests that current prices are likely to continue in this direction. “as no surprise,” It is a mirror of 2016 “post-Halving Danger Zone.”
The flagship cryptocurrency, as of the time this article was written, is currently trading at $57,794.89. The correction is a drop of 6.2% in the last 24 hours. BTC’s price is also declining by 13.4% and 17.7% in both the weekly and month-to-month timeframes.
Bitcoin's performance on the weekly chart. Source: BTCUSDT TradingView
Image from Unsplash.com and Chart from TradingView.com
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