Will Bitcoin Experience a ‘Red Monday, Green Week’? Analyst Sets $63,500 Target
Bitcoin (BTC) witnessed a significant price drop at the beginning of the last week of Q2. This abrupt decline briefly pushed the flagship cryptocurrency below the $60,000 level on Monday, causing concern among investors about the end of the bullish rally. However, crypto analysts remain positive about BTC’s performance and view the drop as part of a quarterly retest.
On Tuesday, a crypto analyst named Jelle made a case for Bitcoin’s bullish momentum. Despite some sectors of the community expressing bearish sentiment, Jelle believes that BTC’s bull run is far from over. Based on Jelle’s analysis, Bitcoin has managed to hold onto key support levels, even during its brief dip below $60,000. Moreover, the cryptocurrency exhibits a “still firmly bullish” higher-timeframe structure.
According to Jelle, this structure has demonstrated BTC’s consistently strong performance over the past year and a half, as indicated by higher highs (HH) and higher lows (HL). The recent price drop can be seen as a higher low compared to the deepest retrace this cycle, which occurred on May 1. Jelle criticized those who harbor negativity towards bullish investors and emphasized that Bitcoin has continually moved higher for almost 20 months. In a bull market, he argues, conviction pays off.
Jelle also highlighted that Bitcoin is currently forming a bullish flag below all-time high levels. In his opinion, this consolidation phase could play out similarly to the consolidation that occurred below the $30,000 resistance range. If history repeats itself, Bitcoin may experience a “chop summer” below the new key resistance level of $74,000 before eventually breaking out. Jelle believes that this breakout could propel BTC to $100,000.
Despite the long-term forecast, Jelle has set a target of $63,500 for Bitcoin this week. He stated that Monday’s drop was reminiscent of the price action witnessed during the 2016-2017 period. Jelle also noted that Bitcoin’s key support level of $58,000 is effectively doing its job during this quarterly retrace. He believes that the cryptocurrency can establish a lower-timeframe higher low on Tuesday, leading to a potential run towards $63,500 by the end of the week. Jelle even suggests that Bitcoin might surpass its weekly open, resulting in a “Red Monday, Green Week.”
Another analyst named Altcoin Sherpa also expressed the belief that BTC could reach the weekly open. According to Sherpa, the current range is a “bounce region” that could bring the price back to $64,000. Although he doesn’t consider this to be the bottom, Sherpa expects this performance to provide some relief for altcoins. He anticipates more volatility before the local bottom is reached and suggests that the price may pull back when it comes into contact with the bearish 4-hour Exponential Moving Averages around the $64,000 level. He also speculates that the local bottom could be tested within the next few days and may coincide with the retrace levels seen on May 1.
As of now, Bitcoin is trading at $61,700, marking a 4.5% recovery from Monday’s pullback.
Featured Image from Unsplash.com, Chart from TradingView.com