In a world of constantly evolving cryptocurrency markets, deciding the bottom of bitcoin's price correction is a task that attracts the interest of both investors and analysts. Joining the fray is offering from cryptocurrency analyst and trader MilkyBull x.com/MikybullCrypto/status/1787396839387357443″ target=”_blank” rel=”nofollow”>perspectives on the topic, stating that the local bitcoin fund has developed due to certain development.
Following its weekend recovery out of bear market territory, the price of bitcoin decreased slightly on Monday. However, MilkyBull is confident that the recent pullback could be the last before btc moves higher.
Local bitcoin Fund Is In
According to the expert, given that the next interest in obtaining liquidity is above $64,557, the local fund for bitcoin is here. As a result, before moving to the current all-time high of $73,000, btc will first break above the $67,000 price level and consolidate. Therefore, bitcoin may clear the CME gap below before or after clearing liquidity above $64,975.
Related Reading: Is bitcoin Bottoming? The pullback from $73,800 is deeper and took longer to form
The CME gap is a price difference that occurs between the Friday closing price and Sunday opening prices of the Chicago Mercantile Exchange (CME) bitcoin futures market. Therefore, the expert considers this development to be a good area for long-term trading, indicating a buying opportunity for btc Bullish Investors.
MilkyBull further drew attention to previous analysis suggesting bitcoin could be primed for a rally due to historical patterns. The analyst noted that the 2017 price action shows that when btc surpassed a new all-time high, there was a healthy liquidity-driven pullback before reaching a cycle peak.
Since btc could be mirroring this pattern, MilkyBull's analysis could suggest that btc has suffered its latest shakeout and that a bullish move could be imminent. It also confirmed that the current consolidation range was parallel to the previous consolidation, which began to materialize from December 2023 to February 2024.
This pattern, identified by the expert as a manipulative strategy of market makers (MM), aims to eliminate degenerate short-term holders (STH), which are particularly vulnerable to price corrections below their base of costs.
btc correction on the horizon
As MilkyBull anticipates a rally, market expert Benjamin Cowen x.com/intocryptoverse/status/1787621706946822604″ target=”_blank” rel=”nofollow”>wait the main cryptocurrency asset that will fall in the coming days. Last week, Cowen claimed btc return on investment (ROI) 12 days after the bitcoin Halving Event It was the worst performance the asset has ever experienced. According to Cowen, this is reasonable as it is the first time btc has reached a new all-time high before the Halving.
Almost a week later, there is still no improvement, as the analyst noted that btc ROI is still performing worse than in previous cycles. Comparing this action to that of 2016, Cowen expects btc to suffer a drop in the coming week.
At the time of writing, btc was trading at $63,970, demonstrating an increase of over 3% in the last week. While its market cap is down 1.17%, its daily trading volume has generated positive sentiment, rising 40%.
Featured image from iStock, chart from Tradingview.com
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