Bitcoin (BTC) has predominantly remained in consolidation below the $70,000 mark over the past few days, with the market awaiting a potentially decisive move amidst prevailing bullish sentiments, such as the upcoming halving event.
Amid this uncertainty, crypto trading expert TradingShot, in an April 9 post on TradingView, suggested that the current consolidation presents an opportunity for investors, projecting a possible parabolic rally.
The analysis suggests that the current consolidation phase around the previous all-time high of almost $69,000 is a clear buy signal reminiscent of patterns from previous cycles.
According to TradingShot’s assessment, this might be the last opportunity for investors to buy before a rally begins.
“The current consolidation around the previous All Time High (ATH) region is a clear buy signal, in fact, based on the 2014/17 Cycle, it is the last we might get before the Parabolic Rally (green) phase starts,” the expert said.
Historical similarities in Bitcoin’s past cycles
TradingShot pointed out similarities between the current situation and past cycles. Both cycles began with a falling wedge pattern leading to a bottom, followed by an accumulation phase once the price broke above the 1W MA50 (Weekly Moving Average 50). This initial surge led to the first take-off phase to test the record high.
One key indicator in the analysis is the 1W RSI (Relative Strength Index), which is likely to remain overbought from this point onward until the top of the cycle. While not central to the current idea, it suggests that Bitcoin could reach at least $200,000 during this cycle.
Bitcoin struggles to break past $70,000
The analyst’s projection is based on Bitcoin’s struggle to maintain its price above the $70,000 mark. Notably, on April 8, Bitcoin briefly surged above $72,000 before undergoing a correction.
However, the likelihood of Bitcoin reclaiming this position has diminished after the releasing higher-than-expected inflation data.
Specifically, the headline inflation rate year-over-year (YoY) reached 3.5%, slightly surpassing the projected 3.4%. This development is expected to influence the Federal Reserve’s policy on interest rates.
Despite the short-term correction, the market remains optimistic about Bitcoin’s potential rally, fueled by bullish catalysts such as the upcoming halving. Additionally, investors are closely monitoring Bitcoin’s response to the potential approval of a spot exchange-traded fund (ETF) in Hong Kong later this month. It’s worth noting that Bitcoin’s recent performance has been partly due to the approval of a similar product in the United States.
At the time of writing, Bitcoin was trading at $68,510, reflecting a loss of over 1% on the daily chart.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Read the full article here
