Amid bearish sentiments surrounding Bitcoin (BTC), a crypto trading analyst has suggested that the asset’s current price movement could indicate a potential new all-time high.
According to TradingShot, in a TradingView post on June 28, Bitcoin is undergoing a consolidation phase reminiscent of its historical behavior before initiating a parabolic rally.
The expert noted that Bitcoin is consolidating at a symmetrical spot relative to previous cycles, which has always preceded a significant upward movement in its price.
Bitcoin price analysis chart. Source: TradingView
The analyst noted that Bitcoin broke above the cyclical lower highs in February. This breakout historically signals the start of a period where Bitcoin posts only higher highs. Based on past cycles, the potential top for this cycle could be between $150,000 and $300,000, per the expert.
“The top can be anywhere within the $150k – $300k range for this Cycle, but as this chart shows, the important thing is to time it as closely as possible,” the expert noted.
Bitcoin’s next short-term move
Notably, with Bitcoin facing bearish pressure, the overall chatter around the asset continues to dip. Specifically, data shared by crypto analysis platform Santiment on June 28 indicated that Bitcoin’s bullish calls across X, Reddit, Telegram, 4Chan, and BitcoinTalk have dropped significantly as traders have lost confidence in the market. While bearish calls have also slipped, the decline has been much less rapid.
Crypto narrative on social media. Source: Santiment
Interestingly, Santiment suggested that the decline in trader euphoria around Bitcoin could be a potential bottom signal. A bottom signal points to an impending market trend reversal. When an asset is undervalued, investors often view a bottom as an opportunity to buy.
In the meantime, cryptocurrency analyst Ali Martinez issued a cautionary note to Bitcoin traders and investorsin an X posit on June 28, advising against premature excitement following the asset’s recent price movement.
Martinez highlighted that if Bitcoin’s price falls to $60,700, it could trigger approximately $22 million in liquidations.
Don't get too excited yet! If #Bitcoin drops to $60,700, around $22 million will be liquidated! pic.twitter.com/iEQm6QPTL5
— Ali (@ali_charts) June 27, 2024Bitcoin price analysis
Bitcoin was trading at $61,588 at press time, marking modest gains of about 0.9% over the last 24 hours. On the weekly chart, Bitcoin remains in the red, losing over 3%.
Bitcoin seven-day price chart. Source: Finbold
Earlier in the week, Bitcoin maintained stable prices around $63,940 from June 22 to June 24 before declining after the announcement of Mt. Gox repayments scheduled for July 2024. Subsequent volatility saw Bitcoin fluctuate between $59,000 and $62,000. Therefore, the key support level to watch remains at $60,000.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
