Bitcoin Price Analysis: End-of-Correction Pattern Hints $BTC Rally to $73k in May 

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.