After months of enthusiasm about a potential rally to unprecedented highs toward $100,000 or – according to some prominent investors – toward $300,000, building up in the wake of spot exchange-traded funds (ETFs) approval, a new record value near $73,000, and the halving event in April, Bitcoin (BTC) price movement turned relatively stagnant and even threatened a collapse in early May.
By the middle of the month – and particularly after the latest CPI report came out lower than was feared – the world’s premier cryptocurrency again took off, gaining nearly 5% in a week and surging from a low near $60,000 to a press time price of $66,357.
While many traders are hopeful the rally signals an end to the crypto market’s stagnant phase and a full return to the bull cycle, technical analysis (TA) analysis reveals that it may not be just smooth sailing ahead.
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TD Sequential warns of imminent BTC correction
Shortly after the most recent Bitcoin rally gained steam, Ali Martinez, a prominent crypto analyst, shared in X that the world’s premier cryptocurrency may be facing an imminent correction.
TD Sequential, a common technical analysis tool designed to detect the timing of a trend reversal of confirmation by analyzing an asset’s earlier performance over a set time frame, issued a strong sell signal on Bitcoin’s 4-hour chart, per the expert.
Martinez also added that the correction is likely to unfold over between one and four candlesticks.
Bitcoin price chart
Though technical analysis may indicate a price drop, Bitcoin has, in the recent past, experienced a significant surge.
Indeed, after undergoing a period of consolidation and heightened volatility paired with mostly sideways trading, the coin has reentered the rally that has seen it rise 54.46% since the start of 2024.
Though BTC is yet to reclaim the highs reached in March, the most recent surge has enabled the cryptocurrency to erase the losses of early May, and Bitcoin is – having risen 5.73% in the 30-day chart – very close to its highs from April 22.
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