Bitcoin Breaks $65,000 Mark Amid Positive Inflation Data: Indicators Point Towards $70,000 Goal
Summary:
Bitcoin experiences a 7.54% surge, crossing the $65,000 threshold largely due to conducive U.S. inflation data. Observers are now monitoring key indicators for signs of a jump to $70,000. Certain crypto traders are relying on the Gann Fans model to predict market trends. Meanwhile, Bitcoin's dominance concerning other cryptocurrencies' market cap has grown to 55.99%. Indicators like the inverse head-and-shoulders pattern suggest that Bitcoin might be ready for an upswing. If current trends persist, Bitcoin could reach a milestone of $70,000, breaking its current record of $74,580.
In the past day, Bitcoin (BTC) experienced a surge of 7.54%, breaking the $65,000 mark, largely as a result of reassuring U.S. inflation figures. Market participants are now eagerly monitoring two key gauges for any signs of a rise to $70,000. A certain crypto trader who prefers to remain anonymous, but is known as Blockchain Mane, confided to Cointelegraph his attention to the Gann Fans model. This crucial tool examines the mathematical and rhythmic movement of the cryptocurrency arena to predict if Bitcoin can “keep its bull run.” Blockchain Mane clarified that Gann Fans serve as a kind of gauge for time and price momentum, aiding in capturing a clearer picture of market cycles and price fluctuations.
The Gann square model is comprised of a 5x5 matrix, with column one marking the cycle’s start. Right now, according to Gann’s timing strategy, we're in a market cycle pivot, smack in the middle of the ongoing square. A shift upwards could indicate a pricing surge until late May, as Blockchain Mane pointed out.
However, a failure to capitalize on this pivot could lead to a continuation of the current sideways and downward trend until May’s end. Blockchain Mane has been intently scrutinizing this pattern as core inflation dropped to a record low since 2021, at a mere 3.6%. Such a decrease in inflation could enhance the likelihood of interest rate reductions.
Blockchain Mane anticipates that Bitcoin would transform its “past resistance” price of $63,000 into a fresh support level, branding this as a positive sign. Bitcoin's current price stands at $66,085.
Blockchain Mane recommends some time of static pricing action, as this would help build further narratives. This, he argues, could obstruct the ability of alternative coins to make gains if neglected. For altcoins, he warns that if BTC surges and gets knocked back down, they could take a hit too since they’re increasingly subject to Bitcoin’s price changes. The precedence of Bitcoin, or its market cap in relation to the total market cap of all other cryptocurrencies, has increased by 2.23% to 55.99% in the last week, based on data by TradingView.
In the meantime, the inverse head-and-shoulders pattern – a bullish sign that implies the downward trend is weakening and buyers' control of the market is increasing – is among the indicators hinting that Bitcoin is "poised for an upswing," shared Milkybull Crypto, another pseudonymous crypto trader, with his followers on May 15. This setup shows an "inverted" head and shoulders below the neckline, indicating a potential reversal.
If this trend persists, Bitcoin's price could reach its next milestone of $70,000 and potentially beat its record high value of $74,580, Milkybull Crypto suggests. This represents an estimated jump of 12% from its current price of $66,085.
This text is purely informational and doesn't give investment counsel or recommendations. Every investment carries its own dangers, hence individuals should conduct diligent research before arriving at a decision.
Published At
5/16/2024 5:28:48 AM
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