Bitcoin Price Analysis: End-of-Correction Pattern Hints $BTC Rally to $73k in May
Highlights
- A bullish breakout from the channel pattern signals the resumption of the prevailing bullish trend.
- The recently reclaimed 20-and-50-day EMAs will offer buyers additional support to drive the BTC price above the $70000 psychological level.
- The intraday trading volume in Bitcoin is $18.6 Billion, indicating a 22.5% loss.
This week was highly volatile for Bitcoin attributing to factors like the dovish Fed meeting result, BTC and ETH ETFs launched in Hong Kong, and post-having correction. A long price spread from $64700 to $56500 in BTC price triggered uncertainty in the altcoin market as well, projecting a lack of dominance of bull or bears. However, the last four-day rally in Bitcoin has titled the trader’s sentiment in buyers’ favor projecting a potential for higher rally.
Also Read: This Firm Invests $75M In BlackRock, Fidelity, Bitwise, GBTC Bitcoin ETF: SEC Filing
A Healthy Retracement Rules the Bullish Momentum in BTC Price
Under the influence of a falling channel pattern, the Bitcoin price witnessed a steady correction for the past four weeks. The downtrend tumbled the coin value from $72756 to $56500 registering a 22.34% loss.
However, the correction trend reverted above the 50% retracement level as the BTC ETFs witnessed a positive inflow on Friday. The positive turnaround surged the price by 13.2% to currently trade at the $63987 mark.
This upswing gives a breakout of the resistance trend of the falling channel pattern signaling the end of the correction trend.
In a recent analysis by the on-chain data tracker Lookonchain, significant Bitcoin (BTC) transactions were observed, highlighting a whale’s aggressive accumulation over the past few months.
This whale bought another 1,500 $BTC($88.25M) from the bottom in the past 2 days.https://t.co/R66sg5OwmW pic.twitter.com/XvD2qsbVf1
— Lookonchain (@lookonchain) May 3, 2024
According to Lookonchain, this particular investor has added a substantial amount of Bitcoin to their holdings, purchasing an additional 1,500 BTC, valued at approximately $88.25 million, in just the last two days. This acquisition comes on the heels of a previous purchase where the same entity bought 4380 BTC for $282.38 million as the price of Bitcoin dipped.
If the BTC price sustains above the channel pattern, the buyers drive a rally to $67450, followed by $47380.
Technical Indicator
- Exponential Moving Average: The BTC price back above 20-and-50-day EMAs indicates the short-term sentiment aligns with the broader bullish rally.
- Average Directional Index: A downtick daily ADX slope at 26% indicates the prevailing bearish momentum is weakening.
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