In an ever-evolving world of cryptocurrency markets, determining the bottom of the Bitcoin price correction is an endeavor that is attracting interest from investors and analysts alike. Joining the fray is the offer of cryptocurrency analyst and trader MilkyBull insights on this topic, claiming that Bitcoin’s local bottom has developed as a result of a certain development.
After recovering from bear market territory over the weekend, the price of Bitcoin fell slightly on Monday. However, MilkyBull is convinced that the recent retracement could be the last before BTC makes a positive move.
Bitcoin’s local bottom is in
According to the expert, the interest rate at the next liquidity grab will be above $64,557As a result, before BTC moves to the current all-time high of $73,000, it will first clear and consolidate the $67,000 price level. So Bitcoin can eliminate the CME gap below $64,975, before or after eliminating liquidity.
Related reading: Bitcoin bottoming? Retracement from $73,800 is deeper and took longer to form
The CME gap is a price difference that occurs between the Friday closing price and the Sunday opening price of the Chicago Mercantile Exchange (CME) Bitcoin futures market. Therefore, the expert views this development as a good area for long trading, indicating a buying opportunity BTC bullish investors.
MilkyBull further drew attention to an earlier analysis that suggests Bitcoin could be poised for a rally as a result historical patterns. The analyst noted that the 2017 price action shows that when BTC hit a new all-time high, a healthy retracement occurred that was driven by liquidity before rising to a cycle peak.
Considering that BTC could mirror this pattern, MilkyBull’s analysis could suggest that BTC has undergone its latest shakeout, and a move to the upside could be imminent. He also confirmed that the current consolidation period was parallel to the previous consolidation, which began to manifest from December 2023 to February 2024.
This pattern, identified by the expert as a manipulative strategy by the market makers (MMs), is intended to remove degenerate Short-Term Holders (STHs), who are particularly vulnerable to price corrections below their cost base.
BTC correction on the horizon
While MilkyBull expects a rally, says market expert Benjamin Cowen expected the most important cryptocurrency asset that will fall in the coming days. Last week, Cowen claimed 12 days after BTC’s Return On Investment (ROI). Bitcoin Halving Event was the worst performance the asset has seen. According to Cowen, this is reasonable as it is the first time BTC has hit a new all-time high before the halving.
Nearly a week later, there is still no improvement as the analyst noted that BTC’s ROI is still underperforming compared to previous cycles. Comparing this action to that of 2016, Cowen expects BTC to experience a decline in the coming week.
At the time of writing, BTC was trading at $63,970, showing an increase of over 3% in the past week. Although the market capitalization has fallen by 1.17%, the daily trading volume has generated positive sentiment, increasing by 40%.
Featured image from iStock, chart from Tradingview.com
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