Bitcoin Faces Price Drop At Start of Q2’s Last Week Before Recovering
Bitcoin (BTC) faced a sharp price drop as the last week of Q2 began. The dramatic decline saw the flagship cryptocurrency momentarily lose its support above the $60,000 level on Monday.
The drop left many investors wondering whether the bullish rally is over. However, crypto analysts remain optimistic about BTC’s performance and consider the drag down to be part of the quarterly retest.
Is Bitcoin Headed For A ‘Chop Summer’?
On Tuesday, crypto analyst Jelle made a case for Bitcoin’s bullish momentum. Amid the bearish sentiment from some community sectors, the crypto investor believes BTC’s bull run isn’t over.
- Jelle believes Bitcoin holds key support levels despite temporary fall under $60,000.
- Bitcoin displays a bullish higher-timeframe structure according to Jelle, making higher highs and higher lows.
Despite the recent price drop, Jelle remains confident in Bitcoin’s upward trajectory, criticizing those who doubt bullish investors and emphasizing Bitcoin’s consistent rise in value over nearly 20 months. The analyst suggests that conviction in a bull market pays off.
Jelle also noted the presence of a bullish flag below all-time high levels, speculating that Bitcoin could experience a period of consolidation, potentially leading to a breakout above $100,000 from the current $74,000 ATH.
Quarterly Retest: ‘Red Monday, Green Week’?
Despite the recent fluctuations, Jelle has set a target of $63,500 for Bitcoin this week. The analyst sees similarities in Bitcoin’s current performance and historical trends from 2016-2017.
- Jelle highlights Bitcoin’s key support level of $58,000 as significant during the quarterly retrace.
- The analyst expects BTC to establish a lower-timeframe higher low to support a run towards $63,500 by the week’s end.
Altcoin Sherpa also shares a positive outlook, suggesting that Bitcoin could return to the weekly open and possibly reach $64,000 as the current range serves as a bounce region. This movement could provide relief to altcoins, although Sherpa cautions that it may not signify the bottom.
Anticipating more volatility in the coming days, Sherpa observes bearish signals in the 4-hour EMAs and expects a pullback to around $64,000. A local bottom is predicted to occur shortly, potentially testing the levels seen in the May 1 retracement.
As of the latest update, Bitcoin is trading at $61,700, marking a 4.5% recovery from Monday’s dip.
Hot Take: Bitcoin’s Path Amidst Fluctuations
Despite the recent price turbulence in the cryptocurrency market, Bitcoin’s resilience and potential for upward movement are highlighted by analysts. The current dip is viewed as part of a larger quarterly retest, with both Jelle and Altcoin Sherpa maintaining positive outlooks for BTC’s short-term performance.
Investors are advised to stay informed and monitor the market closely as Bitcoin navigates through potential choppy waters in the coming weeks. The sentiment remains cautiously optimistic, with projections of key resistance levels being tested and the possibility of significant price movements, including a potential breakout to new all-time highs.
By keeping a close eye on key support and resistance levels, investors can make informed decisions amidst the market volatility and capitalize on potential opportunities presented by Bitcoin and other cryptocurrencies.
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