Bitcoin Bottom In? Retracement From $73,800 Is Deeper And Took Longer To Form

Some
analysts
were
frightened
by
the
recent
drop
in
Bitcoin
prices.
Though
the
coin
is
showing
signs
of
strength,
multiple
leveraged
longs
were
liquidated
early
this
week.

In
a
post
on
X,
one
analyst thinks Bitcoin
might
have
just
found
support,
bottoming
up
after
the
contraction
this
week,
pushing
it
lower
from
the
multi-week
range
established
in
mid-March
through
to
the
better
part
of
April.

 Bitcoin
Retracement
Is
Deeper
And
Took
Longer:
Bottom
In?

Expressing
confidence,
the
analyst
cited
a
historical
pattern.
Based
on
a
price
action
assessment
in
the
weekly
chart,
the
analyst
notes
that
whenever
Bitcoin
posts
a
deep
retracement,
there
is
usually
a
higher
probability
of
the
coin
bottoming
up
and
shaking
off
weakness.

At
the
same
time,
prices
tend
to
recover
after
a
retracement
that
takes
longer
than
expected. 

Building
on
their
historical
pattern
observation,
the
analyst
applied
it
to
the
current
BTC
situation.
The
trader
said
up
to
the
current
level,
the
retracement
from
an
all-time
high
is
deeper
and
also
took
longer
than
usual,
spanning
several
weeks.
As
a
result,
the
analyst
projected
a
high
likelihood
that
Bitcoin
prices
might
have
found
a
bottom. 

While
confidence
abounds,
it
is
still
challenging
to
pick
bottoms.
Bitcoin
and
crypto
assets
are
volatile,
with
prices
moving
quickly
in
either
direction.
At
spot
rates,
Bitcoin
is
trading
above
$60,000,
reversing
losses
of
May
1.

Even
though
this
might
cement
the
analyst’s
position,
BTC
remains
within
a
bear
breakout
formation,
defined
by
the
wide-ranging,
high-volume
bear
bar
of
April
30.

Moreover,
the
coin
is
still
boxed
away
from
the
April
trade
range,
suggesting
that
weakness
remains.
Should
there
be
a
conclusive
close
above
$62,000,
the
trend
will
likely
shift
in
favor
of
bulls,
reversing
the
losses
of
April
30.

Before
then,
aggressive
traders
might
be
unloading
at
higher
prices,
aligning
with
the
current
bearish
formation.

Market
Forces
Will
Shape
BTC
Prices

Despite
the
bearish
outlook,
most
analysts
are
bullish,
expecting
a
sharp
price
recovery.
One
of
them took to
X,
suggesting
that
buyers
will
likely
take
charge
if
prices
recover
from
spot
rates
and
return
to
the
horizontal
range
of
March
to
April.

The
pace
and
direction
at
which
prices
move going forward
lean
on
market
factors.
So
far,
spot
Bitcoin
exchange-traded
fund
(ETF)
issuers
are
decreasing
their
holdings.

At
the
same
time,
the
United
States

Federal
Reserve
is
tracking
inflation
and
other
metrics
as
they
tune
monetary
policy.

If
inflation
drops,
the
USD
will
likely
strengthen,
heaping
more
pressure
on
the
world’s
most
valuable
crypto.

Feature
image
from
Shutterstock,
chart
from
TradingView

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