In the ever-evolving world of cryptocurrency markets, identifying the bottom of a Bitcoin price correction is an endeavor that attracts the attention of both investors and analysts. Cryptocurrency analyst and trader MilkyBull joins the fray ideas On this topic, claiming that the local bottom of Bitcoin has developed due to a certain development.
After recovering over the weekend from the bear market zone, the price rose Bitcoin It fell slightly on Monday. However, MilkyBull is confident that the recent correction could be the last before BTC turns to the upside.
The local bottom for Bitcoin is in place
According to the expert, since the benefit of obtaining the next liquidity is more than $64,557Bitcoin's local bottom has been reached. As a result, before moving to the current all-time high of $73,000, BTC will first clear and consolidate the $67,000 price level. Therefore, Bitcoin may clear the CME gap below either before or after liquidity above $64,975 is cleared.
Related Reading: Has Bitcoin Hit Bottom? The bounce from $73,800 is deeper and took longer to form
The CME gap is the price difference that occurs between the Friday closing price and the Sunday opening prices of the Bitcoin futures market on the Chicago Mercantile Exchange (CME). Therefore, the expert considers this development to be a good area for long trading, indicating a buying opportunity BTC for bullish investors.
MilkyBull also drew attention to previous analysis suggesting that Bitcoin may be poised to rise due to Historical patterns. The analyst noted that 2017 price action shows that when BTC broke to a new all-time high, there was a healthy liquidity-driven correction before it surged to the peak of the cycle.
Given that Bitcoin may be reversing this pattern, MilkyBull's analysis may indicate that Bitcoin has seen a recent shake-up, and a move to the upside may be imminent. He also emphasized that the scope of the current unification was parallel to the previous unification, which began to materialize from December 2023 to February 2024.
This style, identified as a manipulative strategy of market makers (MMs) by the expert, aims to remove short-term distressed holders (STHs), who are particularly vulnerable to price corrections below their cost base.
BTC correction on the horizon
While MilkyBull expects a rally, market expert Benjamin Quinn said Expect Leading Crypto Assets That Will Drop in the Coming Days. Last week, Coin claimed a return on investment (ROI) for BTC after 12 days Bitcoin halving event It was the worst performance the original had ever seen. According to Cowen, this is plausible because it is the first time Bitcoin has reached a new all-time high before the halving.
Nearly a week later, there has been no improvement, with the analyst noting that BTC's ROI is still performing worse than in previous sessions. Comparing this action with what happened in 2016, Cowen expects Bitcoin to see a decline next week.
At the time of writing, Bitcoin was trading at $63,970, showing an increase of more than 3% in the past week. While its market capitalization decreased by 1.17%, daily trading volume gained positive sentiment, increasing by 40%.
Featured image from iStock, chart from Tradingview.com
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