Price Analysis

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

The Bitcoin price reversal above the 50% retracement level bolstered buyers to breach the resistance trendline of the bullish continuation pattern, Buy now?

Published by

Sahil Mahadik

Published 05 May, 2024 | 07:36:05 PM UTC

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.

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.

Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Published by

Sahil Mahadik

Published 05 May, 2024 | 07:36:05 PM

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