Bitcoin has been struggling to maintain momentum after briefly touching $70,000 in April. The predominant sentiment among traders has been bearish, with the price oscillating between highs around $63,800 and lows near $60,000. However, some analysts believe the bearish trend is nearing its end, and the price of Bitcoin is poised for another surge toward the coveted $70,000 mark.
Among those bullish on Bitcoin’s prospects is TradingView analyst Xanrox, who sees the recent price action as part of a corrective pattern setting the stage for a renewed upward push. In a detailed analysis, Xanrox argues that Bitcoin has completed an “ABC ZigZag” corrective move and is now ready to rally higher, with an initial target of $70,000 (or $69,577, to be precise).
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According to Xanrox, the $70,000 level represents a significant 1:1 Fibonacci extension level, which often acts as a resistance point before prices continue their ascent. The analyst expects a potential short-term pullback once Bitcoin reaches this level but remains optimistic about the cryptocurrency’s long-term trajectory, eyeing the 1.618 Fibonacci extension as the next major milestone.
Xanrox’s analysis is further bolstered by the observation of two parallel ascending channels on the Bitcoin chart. While the price remains within the larger of these channels, Xanrox suggests traders may consider selling or shorting Bitcoin upon a touch of the upper trendline, albeit not in the current bullish environment.
From an Elliott Wave perspective, Xanrox sees a “dream setup” for traders, with Bitcoin potentially in the third impulse wave of its current cycle. This presents an opportunity to ride the wave until the end of the impulse before the fourth corrective wave sets in.
BTC Bears Running Out of Steam
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Show more +Santiment, an on-chain analytics firm, has also weighed in on Bitcoin’s recent price action. In a tweet, the firm noted that traders are showing weak “buy the dip” interest in the latest retrace to around $60,200, suggesting a lack of faith among the crowd. Counterintuitively, Sentiment interprets this lack of interest as a strong sign that prices may be nearing a bottom, as crowd sentiment often contrasts with market movements.
While Bitcoin’s price trajectory remains uncertain, the analyses from Xanrox and Sentiment suggest that the bears may be running out of steam, and the bulls could soon regain control, setting their sights on the much-anticipated $70,000 level.
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