Bitcoin (BTC), the market’s largest cryptocurrency, has been trading sideways since experiencing a drop of more than 5% on Monday. Despite this decline, Bitcoin found support at $27,200, preventing further drops that could potentially damage the next bull run of the leading cryptocurrency.
However, many investors wonder if Bitcoin will show any signs of recovery anytime soon. Will the cryptocurrency market see a reversal of bullish sentiment, or will the current bearish trend continue?
Bitcoin’s 70-Day Correction, Is May 19th the End Date?
Jesse Olson, an experienced cryptocurrency analyst, recently shared his insights in the performance of Bitcoin since the bottom. According to Olson, Bitcoin has experienced two major breakouts since its bottom, with the first resulting in a 54% gain and a subsequent correction of 22% that took 70 days. from one pivot down to one pivot down. The second breakout resulted in a 58% gain, followed by a current correction of 13%.
However, Olson pointed out that Bitcoin price could reach the third target if the second breakout experiences a -22% correction. He also noted that if it takes 70 days from pivot low to pivot low, this correction will last until May 19. It is important to note that these scenarios are not identical, but the longer frames the time is still strong.
Furthermore, if Bitcoin fails to hold its current trading level of $27,400, it risks losing its 50-day moving average. Despite this, the cryptocurrency’s biggest support floor is still thousands of dollars below its current mark, at $24,600, which is noted by the yellow line below (200dMA). According to Jesse Olson’s analysis, this level will represent one of the three targets if the decline continues.
Signs Point to Prolonged Volatility Suppression in Bitcoin Market
The cryptocurrency market has been characterized by prolonged suppression of volatility in recent days. ACCORDING of the research firm King Fisher, it causes a sensation of “pent-up energy” expected to be released. Indications are that the market is setting up to hunt for x20 leverages, which has caught the attention of the research firm.
King Fisher’s analysis suggests that the current calm in the Bitcoin market may be the calm before the storm, with a potential surge in volatility looming. In addition, according to King Fisher’s analysis, the cryptocurrency market is currently experiencing a short ratio hovering around 60-70%, which indicates a potential short squeeze.
In addition, enthusiastic traders who rush to convert their assets into cash appear on the scene, potentially losing out on potentially increasing gains. A key player in the recent marginal seller of the Bitcoin market can be linked to the potential sale of Digital Currency Group (DCG) in some assets to change the financial plan to pay the subsidiary Genesis.
Meanwhile, the open interest (OI) in the Bitcoin market remains strong, with many investors waiting for a settlement or lock in synthetic USD. This suggests that many investors are cautious, waiting for more certainty before making any big moves.
Despite the uncertainty, many experts remain bullish on the long-term prospects for Bitcoin and other cryptocurrencies. With increased adoption and institutional investment, the cryptocurrency market will likely continue to play a major role in the global financial landscape for years.
Featured image from Unsplash, a chart from TradingView.com