The recent decline in the price of Bitcoin has left some traders puzzled, with many labeling it as a mere “fake out” before the next upward surge. Data from Cointelegraph Markets Pro and TradingView revealed that leveraged long traders were caught off guard as BTC dropped from a high of $71,980 on May 21 to an intra-day low of $67,550 on May 23.
Independent analyst Jelle noted that Bitcoin appears to be following a similar trajectory to that of 2016-2017. Many are predicting that once Bitcoin surpasses the 2021 all-time highs, it will enter a parabolic uptrend and reach a staggering price of $100,000.
Trader and analyst Mags shared a similar sentiment, suggesting that the current BTC correction may simply be a “fake out” — a pattern that has been observed since it hit the low of $15,500. This trend involves the price consolidating within a range for several weeks or months, breaking down below the range, trapping the bears, and then swiftly reclaiming its position for another upward movement.
Jelle also pointed out that BTC’s recent recovery above $65,000 has broken through “all key resistance levels,” including the 50-day exponential moving average (EMA), currently at $64,665. This has resulted in “hidden bullish divergence,” further supporting Bitcoin’s future upside.
Fellow analyst Matthew Hyland noted that BTC’s price was nearing a retest of the demand zone between $64,000 and $67,000, marking the neckline of an inverse head-and-shoulders pattern. He mentioned that Bitcoin has broken out above the H&S and closed a daily candle above it, signaling the potential for a bullish structure on a higher timeframe.
Popular analyst Wolf Of All Streets weighed in by stating that bulls are hoping for the $67,000 support area to hold, indicating a potential range-bound movement between $67,000 and a new all-time high of $73,835.
Despite the positive outlook, traders who bet on BTC’s recovery from the recent levels experienced substantial losses. On May 23, the downturn led to the liquidation of $159.3 million in long positions, contributing to a 24-hour total wipeout of $227.51 million.
It is essential to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve some level of risk, and readers are encouraged to conduct their own research before making any decisions.
In conclusion, while the recent price correction in Bitcoin may have taken some traders by surprise, analysts remain optimistic about the cryptocurrency’s future potential, with projections of a parabolic uptrend and continued bullish momentum once previous all-time highs are surpassed. As always, cautious optimism and thorough research should guide investment decisions in the ever-changing digital asset landscape.
