Bitcoin Mimics 2017 Trends; Potential Breakout at $75,000 Predicted by Renowned Trader
Summary:
Prominent trader Jelle has recognized striking parallels between Bitcoin's current patterns and those of early 2017, suggesting a potential 'main breakout' at $75,000. Despite 2024 marking a new all-time high for Bitcoin, data indicates significant gains are still possible. However, analysts suggest Bitcoin's performance could see a dip to $60,000 or lower. Amid the uncertainty, individuals are urged to conduct their own research before making any investment decisions.
Renowned trader Jelle has noted a striking similarity between the Bitcoin (BTC) patterns of early 2017 and now, with the cryptocurrency being poised for the next "main breakout" at $75,000. The observation was made on the social media platform X on May 24. Across different Bitcoin bull cycles, notably 2016-17 and 2020-21, analysts often draw parallels and according to them, the current trend appears to be maintaining the pattern. Despite 2024 marking a new all-time high before a block subsidy halving, data indicates that Bitcoin still has considerable profits to make.
The Relative Strength Index (RSI), which measures if an asset is overbought or oversold, is particularly significant, according to Jelle. On weekly timeframes, the BTC/USD pairing displays an intriguing trend. As per Jelle, the key to Bitcoin's strongest rallies historically lies in the RSI surpassing 70 i.e., entering the "overbought" zone. This can persist for a considerable period before the Bitcoin price spike becomes fragile.
Despite this optimistic forecast, there is uncertainty about Bitcoin's short-term performance. Consideration of a dip back to $60,000 or even lower comes after the preliminary approval of Spot Ether (ETH) exchange-traded funds in the US did little to improve Bitcoin or Ether's performance. Prominent trader Credible Crypto and Michaël van de Poppe, chief executive of the trading firm MNTrading, suggest that Bitcoin's ongoing consolidation may last and could even reach between $61,000 and $63,000.
Van de Poppe observed a circulation of liquidity from Bitcoin to Ether after the Spot Ether ETF launch, which he deemed "fine". However, it is advised that every investment and trading action involves risk and comprehensive research should be undertaken before any decision is made.
Published At
5/24/2024 4:34:23 PM
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