Bitcoin
Bitcoin Local Bottom In? Analyst offers insights – TradingView News
In an ever-evolving world of cryptocurrency markets, deciding the lowest level of Bitcoin price correction is an endeavor that attracts interest from investors and analysts. Entering the fray is cryptocurrency analyst and trader MilkyBull, offering insights on the matter, claiming that the local Bitcoin fund has developed due to a certain development.
Following the weekend’s recovery out of bear market territory, the price of Bitcoin fell slightly on Monday. However, MilkyBull is confident that the recent pullback could be the last before BTC moves higher.
Bitcoin local fund is on the rise
According to the expert, given that the next liquidity capture interest is above $64,557, the local bottom for Bitcoin is on the rise. As a result, before moving to the current high of $73,000, BTC will first overcome the $67,000 price level and consolidate. Thus, Bitcoin can eliminate the CME gap below before or after eliminating liquidity above $64,975.
Related Reading: Bitcoin Bottom In? The retracement to $73,800 is deeper and took longer to form
The CME gap is a price difference that occurs between the Friday closing price and the Sunday opening prices of the Chicago Mercantile Exchange (CME) Bitcoin futures market. Therefore, the expert considers this development a good area for long trades, signaling a buying opportunity for bullish BTC investors.
MilkyBull also drew attention to previous analysis that suggests Bitcoin may be poised for a rally due to historical patterns. The analyst noted that the 2017 price action shows that when BTC reached a new all-time high, there was a healthy pullback that was driven by liquidity before reaching the peak of the cycle.
Given that BTC may be reflecting this pattern, MilkyBull’s analysis may suggest that BTC has experienced its latest jolt and an upward move may be imminent. It also confirmed that the current consolidation interval was parallel to the previous consolidation, which began to materialize from December 2023 to February 2024.
This pattern, identified as a manipulative strategy of market makers (MMs) by the expert, aims to remove degenerate Short Term Holders (STHs), who are particularly vulnerable to price corrections below their cost basis.
BTC correction on the horizon
Although MilkyBull predicts a recovery, market expert Benjamin Cowen expects the leading cryptocurrency asset to decline in the coming days. Last week, Cowen stated that BTC’s return on investment (ROI) 12 days after the Bitcoin Halving event was the worst performance the asset has ever experienced. According to Cowen, this is reasonable as this is the first time BTC has reached a new high before Halving.
Almost a week later, there is still no improvement as the analyst noted that BTC’s ROI is still performing worse than in previous cycles. Comparing this action to 2016, Cowen expects BTC to experience a decline next week.
At the time of writing, BTC is trading at $63,970, demonstrating an increase of over 3% over the past week. Although its market capitalization fell by 1.17%, its daily trading volume generated positive sentiment, increasing by 40%.