Bitcoin Bull Run Over? Analyst Predicts What To Expect Now
May 02 2024 - 6:30AM
NEWSBTC
The recent plummet in Bitcoin’s value below the $60,000 mark has
sparked widespread speculation within the crypto community, raising
questions among investors and market watchers about the future
direction of its price. Marco Johanning, a well-known crypto
analyst and founder of The Summit Club, took to X (formerly
Twitter) to provide his insights on the current market conditions
and what might be expected next. According to Johanning, the recent
price action does not signify a market downturn but rather a
correction within an ongoing bull market. He emphasizes, “Bitcoin
lost the range. What now? First and foremost, a reminder: we are in
a bull market, and this is a correction. This is not a rally in a
bear market. Or in other words, the high time frame trend is up no
matter what.” He supported this assertion with several indicators
of a continued bullish trend. First, Bitcoin reached its bear
market bottom in November 2022 and subsequently broke above the
200-day moving average, a critical indicator of long-term market
trends. Following a drop below the 200-day moving average, there
was a significant breakout above this level and THE major high time
frame resistance in October 2023. Related Reading: Bitcoin Price
Dips Below $57,000: 4 Key Reasons Moreover, Bitcoin achieved a new
all-time high in March 2024. Over the last 18 months, Bitcoin has
consistently recorded higher highs and higher lows, which are
typical characteristics of a bullish market. “This can’t be a bear
market,” Johanning explained. “These elements underscore a
fundamental bias crucial for assuming that the current drop is part
of a broader bull market trend. Therefore, Bitcoin will eventually
find a local bottom and ascend higher.” Bitcoin Price Analysis:
What To Expect Next? Johanning provided a detailed breakdown of
possible future scenarios based on technical analysis. His first
scenario is based on the monthly chart where the most crucial level
is at $48,000-$49,000. This level is key because it was a major
hurdle overcome in February 2024. Now, it might serve as the
perfect point for a bullish retest. Furthermore, there’s a
significant market imbalance down to the $48,000-$49,000 range,
coinciding with the 0.5 Fibonacci retracement level from the last
monthly swing low. This setup suggests a strong potential for price
stabilization and reversal at this level, according to Johanning.
The second scenario grounds on the weekly chart where the important
level is at $52,000. This level acts as a major high time frame
support/resistance, marked by a weekly imbalance that extends up to
$52,000, and it matches the 0.382 Fibonacci retracement from the
bottom to the top of the last major rally, and the 0.618 level from
the last swing low to the top. The third scenario is based on the
lower timeframes. Here, the most significant level is at $57,000.
This mark is critical as it represents the 0.5 Fibonacci level from
the last swing low and was a key area during the February climb.
This level might serve as the stage for a potential deviation or
price trap. “The recent bearish engulfing pattern breaking the
monthly levels, followed by a bearish retest, signals significant
market shifts,” noted Johanning. “If Bitcoin swiftly reclaims these
key levels, particularly the $57,000 mark, we could see a deviation
scenario unfold. Otherwise, the $52,000 or $48,000-$49,000 levels
will likely be tested, each representing a higher low in the
ongoing uptrend.” Related Reading: Bitcoin Is Fine As Long As It
Holds Above $49,000: Analyst Impact on Altcoins And Market Strategy
Altcoins have displayed remarkable resilience in the face of
Bitcoin’s volatility, which Johanning finds particularly promising.
“Usually, a significant drop in Bitcoin accompanied by a loss of a
higher time frame range would lead to severe declines in altcoins.
However, their strength yesterday is a good indicator that the
worst may be over for altcoins,” he commented. Johanning concluded
his analysis with an optimistic outlook for both Bitcoin and
altcoins, expressing confidence in the continuation of the bull
market. He is actively accumulating more at current prices,
anticipating substantial returns: “No matter which scenario plays
out, I am committed to this trend until proven otherwise. I’m
investing heavily, and if we truly remain in a bull market, the
potential for profit is tremendous.” At press time, BTC traded at
$58,328. Featured image created with DALL·E, chart from
TradingView.com
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