As bitcoin falls, liquidating long leveraged bets along the way, one analyst, in a twitter.com/thescalpingpro/status/1785938165657989278″ target=”_blank” rel=”noopener nofollow”>mail At x, he believes this could be an excellent opportunity to accumulate, citing historical patterns of pullbacks followed by impressive recoveries.
Is it time to charge the bitcoin crash?
The analyst shared a chart indicating that bitcoin is within historical retracement ranges. Whenever this happens, prices tend to rebound sharply, rising, much to the relief of holders.
Solid data supports this assessment. The analyst said that since bitcoin bottomed at $15,500 in 2022, there have been four separate pullbacks, all within the -20% to -23% range. For experts, the trader continued, each of these recessions presented an opportunity to accumulate at a discount.
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Therefore, if history aligns with this preview, bitcoin may become available at a discount to spot rates. At spot exchange rates, the currency is down about 23% from all-time highs of $73,800 in mid-March.
Nobody knows how prices will be reflected in the coming sessions. However, looking at the candlestick layout, btc has resistance in the $60,000 to $61,000 zone. A clean break above this zone could solidify the analyst's view, setting in motion the start of another leg of an exit that could take out $74,000 in the coming weeks.
Spot ETF Inflows Reduce, US Federal Reserve Turns Dovish
Although optimism reigns, the possibility of btc falling below the $52,000 and $50,000 support levels cannot be ruled out. This outlook, while bearish, is also supported by data.
For example, on May 1, spot bitcoin exchange-traded funds (ETFs) redeemed $563.7 million worth of btc. In the past, when the currency was flying from February to mid-March, inflows were in the hundreds of billions.
The excitement was palpable even as Grayscale liquidated GBTC, decreasing btc. Now that there is a marked increase in capital outflows, this suggests that sellers are in control and detecting that ETF holders are panicking and looking to exit.
Despite the negative sentiment and predictions that bitcoin will melt to $52,000, another analyst twitter.com/WhalePanda/status/1785880975164997939″ target=”_blank” rel=”noopener nofollow”>remains positive. Citing that the US Federal Reserve reduced the second round of quantitative tightening (QT) from $65 billion to $45 billion, the analyst went on to say that bitcoin prices could benefit from the “moderate” environment.
Of note, the central bank said it is unlikely to raise interest rates. Instead, they look to cut rates when supporting data shows inflation falling towards the 2% benchmark level. Currently, inflation remains high but lower than 2021 averages.
Featured image from Canva, TradingView chart
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