Is Bitcoin at the bottom? Analysts predict a recovery

As May 1 began, bitcoin (btc) faced a new correction that saw the price fall below the $60,000 support level. The flagship cryptocurrency has seen several pullbacks during this bull cycle, with btc quickly reclaiming crucial support zones each time.

However, in the past 24 hours, the largest cryptocurrency by market capitalization has struggled to regain its momentum. Some analysts believe that bitcoin could be bottoming this cycle as this correction officially became its deepest pullback.

Is the bitcoin bottom here?

In the early hours of Tuesday, bitcoin began to fall from the $64,000 price range. As the day progressed, btc extended its decline to briefly trade between $59,958 and $59,191 before recovering.

This time, the recovery did not last long as bitcoin price resumed its downward trajectory to $57,000. In an x thread, cryptocurrency trader Milkybull twitter.com/MikybullCrypto/status/1785617072296206825″ target=”_blank” rel=”nofollow”>examined Some data suggests it may have finally hit bottom.

According to the analyst, btc is “following the 2017 PA.” This would suggest that “either the bottom is inside or nearby.” Additionally, he urged investors to remember that while good news “usually points to the top,” bad news points to the bottom of a bull market.

In the thread, the trader noted that the bitcoin Bull Market Support Band Indicator historically offers strong support during btc bull cycles. As a result, he believes that the flagship cryptocurrency could “break through support and recover.”

<img decoding="async" class="size-large wp-image-606055 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/05/Is-Bitcoin-at-the-bottom-Analysts-predict-a-recovery.jpeg" alt="bitcoin, btc” width=”860″ height=”487″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/05/GMfCNggXAAAzBob.jpeg?w=1950 1950w, https://www.newsbtc.com/wp-content/uploads/2024/05/GMfCNggXAAAzBob.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/GMfCNggXAAAzBob.jpeg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/05/Is-Bitcoin-at-the-bottom-Analysts-predict-a-recovery.jpeg 860w, https://www.newsbtc.com/wp-content/uploads/2024/05/GMfCNggXAAAzBob.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/05/GMfCNggXAAAzBob.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/05/GMfCNggXAAAzBob.jpeg?w=1140 1140w” sizes=”(max-width: 860px) 100vw, 860px” loading=”lazy” data-recalc-dims=”1″/>

2024's bitcoin Bull Market Support Band indicator resembling 2017's. Source: x.com/MikybullCrypto/status/1785617078319190283" target="_blank" rel="nofollow">MilkybullCrypto on x

According to the analyst, bitcoin and global liquidity are also strongly correlated, with btc currently at a level it has previously recovered from. These bounces started “huge demonstrations throughout the cryptocurrency market” in October 2022 and October 2023.

Lastly, the thread highlighted that bitcoin “is at a critical decision point for the local fund.” The trader believes that while some are calling for a bottom at $48,000, the $51,000 support level could be where btc recovers to resume its cycle to the top of this cycle.

bitcoin's deepest pullback this cycle

According to crypto analyst and trader Rekt Capital, this correction has officially been btc's deepest pullback this cycle. According to him x.com/rektcapital/status/1785661251357487123″ target=”_blank” rel=”nofollow”>mailToday's -23.64% retracement exceeds the -22.91% retracement seen in February 2023.

The analyst also compared the “post-halving” pullback of this cycle to that of 2016. Furthermore, the trader believes that this bull cycle could be more similar to that of 2016 than investors think.

<blockquote class="twitter-tweet” data-width=”500″ data-dnt=”true”>

twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#btc

We are here (orange circle)

And we've seen pushbacks like this after Halving in the past (e.g. 2016).twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin twitter.com/hashtag/BitcoinHalving?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#BitcoinHalf pic.twitter.com/OvOcmJTzFk

-Rekt Capital (@rektcapital) twitter.com/rektcapital/status/1785600472029466670?ref_src=twsrc%5Etfw” rel=”nofollow”>May 1, 2024

Previously, Rekt Capital listed three reasons why these two cycles could be similar. According to the trader, the similarities include the “breakout of the pre-halving reaccumulation range,” the “start of the pre-halving pullback,” and the “similar initial reaction after the start of the pre-halving pullback.” half”.

After today's decline, the analyst twitter.com/rektcapital/status/1785599091893846428″ target=”_blank” rel=”nofollow”>aggregate the “continuous decline in the three weeks after the halving” as the fourth similarity between the cycles of 2016 and 2024. As eight years ago, bitcoin faces an “additional disadvantage below the low range of its reaccumulation range” in the three-week window weeks after the bitcoin “halving.”

Furthermore, the analyst suggests that the current price development is not “a surprise” as it reflects the “post-halving danger zone” of 2016.

At the time of writing, the flagship cryptocurrency is trading at $57,794.89. This correction represents a drop of 6.2% in the last 24 hours. Similarly, btc is recording price drops of 13.4% and 17.7% on the weekly and monthly timeframes.

<img loading="lazy" decoding="async" class="size-large wp-image-606053 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/05/Is-Bitcoin-at-the-bottom-Analysts-predict-a-recovery.png" alt="btc, bitcoin, BTCUSDT” width=”860″ height=”488″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/05/BTCUSDT_2024-05-01_07-56-02.png?w=1077 1077w, https://www.newsbtc.com/wp-content/uploads/2024/05/BTCUSDT_2024-05-01_07-56-02.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/BTCUSDT_2024-05-01_07-56-02.png?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/05/Is-Bitcoin-at-the-bottom-Analysts-predict-a-recovery.png 860w, https://www.newsbtc.com/wp-content/uploads/2024/05/BTCUSDT_2024-05-01_07-56-02.png?w=750 750w” sizes=”(max-width: 860px) 100vw, 860px” data-recalc-dims=”1″/>

bitcoin's price performance in the weekly chart. Source: BTCUSDT on x/ef0pIfKs/" target="_blank">TradingView

Featured image from Unsplash.com, chart from TradingView.com

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