Analyst Predicts Bitcoin to Cross $45k in May - Technicians Say Otherwise

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BTC has had an impressive 80% rally this year, outperforming traditional assets like the Nasdaq index. This upward trend comes after a 12-month recession in which BTC prices fell 76%, reaching their lowest point in November 2022.

Vetle Lunde Predicts Bitcoin Will Hit $45,000 In The Coming Weeks

Vetle Lunde, a senior analyst at K33 Research, believes that the current pattern closely resembles that seen during the 2018-19 bear market.

Lune has made a comment stating: “The funds in both cycles lasted approximately 370 days. And the peak-to-trough return after 510 days of both cycles reached 60%,” Lunde said in a note sent to clients last week. “In 2018, the bear market rally topped 556 days after the 2017 peak, on June 29, 2019, down 34% from the peak.”

Lunde emphasizes that the story of the previous bear market cycle is unlikely to repeat itself in a similar fashion, but the similarities in the pattern are intriguing. Bitcoin fell 84% in 2018, with prices bottoming out near $3,100 in December. However, the trend changed in the months that followed, with prices rising to $3,700 in early 2019 and rising as high as $13,800 by the end of June.

Crypto watchers on Twitter have referred to BTC’s rise so far this year as a “hated bullish move.” This is because some well-known traders were prepared for a bigger sell-off in the first quarter.

A bull market that is considered “hated” usually begins during a time of heightened pessimism, gaining momentum when investors who had reduced their risk due to expectations of a prolonged decline begin to feel underexposed and jump into the uptrend.

According to Lunde, the early 2023 rally has all the makings of a hated rally, and the “hated 2019 rally” ended with a significant spike before BTC resumed trading down 40-60% from its historical value. of 2017. high.

Currently, the Bitcoin price is at $29,181, which is a 2.5% drop for the day. Although the future is uncertain, Lunde’s analysis suggests that Bitcoin may continue to rise in the coming weeks and could potentially top out at $45,000.

Bitcoin technical analysis shows the resemblance of a historical pattern

The cryptocurrency community always closely watches the technical analysis of Bitcoin, and the recent revelation of an ascending triangle pattern on the daily chart has caused quite a stir.

The ascending triangle is a well-known bullish continuation pattern that usually forms during an uptrend, indicating that buying pressure is increasing while selling pressure remains constant. This is an optimistic sign for Bitcoin investors as it may signal a significant price breakout in the near future.

The pattern was highlighted by Jake Wujastyk, a popular cryptocurrency analyst, on Twitter, and his tweet drew attention to the ascending triangle pattern, further noting that this development could lead to a substantial upward movement in the price of Bitcoin.

However, as with any technical analysis, there is no guarantee that the pattern will play out as expected, and traders should remain vigilant and consider other factors that could affect the price path of Bitcoin.

Bitcoin rallied from a one-week low on Tuesday, hitting a high of $29,944.78, as markets reacted to China’s latest gross domestic product (GDP) report. Although the price of Bitcoin is currently at $29,181, down 2.5% in the last 24 hours, the bounce came as the 14-day Relative Strength Index (RSI) bounced off a floor of 59.00.

Current price strength is at the 61.91 mark, with the next top visible at the 65.00 level, indicating that Bitcoin could trade above $30,200 if the RSI hits this next target.

While investors view the ascending triangle pattern as a positive sign, it is important to approach any investment decision with caution and proper research.

Bitcoin falls to $29,181 after topping Tuesday’s gains

Bitcoin price rallied above the key $30,000 level on April 19, after dipping below $29,250 the day before. This sudden gain of $500 in value was welcomed by traders, who raised concerns about BTC’s ability to maintain its foothold above $30,000.

BTC posted daily gains of around 4% as a result of increased liquidity during Wall Street’s opening trading sessions; however, the token is now down around 2.5% on the day.

A popular crypto analyst on Twitter highlighted BTC’s slide towards $29,000 as a cause for concern. However, the analyst noted that the crypto would need to produce another daily close above the 2023 high of $31,035 to regain bullish momentum. Fortunately, this feat was accomplished on April 19, when BTC regained its position above the psychological $30,000 level.

If the buying pressure continues, the next logical move would be to rally to the local high of $31,035, which could result in the largest cryptocurrency by market cap returning to the psychological level of $32,000. This would represent an increase of 5.32%. of the current price.

The simple moving averages (SMA) are pointing up, indicating that a new set of buyers is entering the market. The 50-day SMA, 100-day SMA, and 200-day SMA, at $26,668, $24,612, and $21,279 respectively, have provided strong downside support zones for BTC.

Furthermore, the RSI is in the positive region, indicating that there is more room for upside. If BTC continues its uptrend, the RSI could soon generate a buy signal, which could solidify the short-term bullishness of the king of cryptocurrencies.

However, if the buying pressure eases, the BTC price could drop from current levels and fall below the $30,000 mark. This scenario could see BTC fall to find support around $29,100 or lower, possibly revisiting the psychological level of $28,000 or the March 15 low below $25,000.