Price Analysis

Bitcoin Slumps Hard, While the Rally Remains at the Foothill of a Major Explosion Aiming for $78,000

The markets had come under bullish influence as Gamestop’s glory elevated the BTC price levels above $63,400 for a while. In no time, the price faced extreme selling pressure as the bears reacted to the bullish breakout. However, the extreme price and volume squeeze have been flashing bullish signals, which may initiate a fresh upswing in the coming days. Therefore, this indicates the Bitcoin price rally continues to remain under bullish influence and could trigger a fresh upswing soon.

The daily chart of Bitcoin suggests the price is stuck within a descending range but the larger perspective displays the formation of a bullish structure. Besides, the HTF of the rally shows the token about to accomplish a cup and handle pattern that could propel the price towards a new ATH, probably above $78,000 in the first few weeks of H2, 2024. 

After undergoing a parabolic recovery, the BTC bulls have shown some weakness, forming the ‘handle’. Furthermore, the bulls have had the upper hand since the beginning of the year, mirroring the 2021 bull run. However, the bearish power surged shortly after that, and it does not appear to be repeating itself now. The Bears worked hard to reclaim dominance, but the Bulls have regained control since the beginning of the month.

On the other hand, the total daily transfer volume is flashing huge bullish signals, suggesting the possibility of the beginning of a fresh bullish spell.  

Before the previous bull rallies, there were periods of deficient Bitcoin transfer volume, indicating the expectations of growth among the investors. Therefore, the BTC price appears to be at the foothill of a major upswing, which may transform into a bull rally soon. Previously, whenever the volume reached rock bottom levels, a strong bull run followed the rally. Therefore, a similar price action may be expected, provided the BTC price is required to secure some important resistance levels. 

The Bitcoin price has again slumped below $62,000, but the technicals and the formed patterns suggest that the price may continue with the descending consolidation for a few more weeks. After achieving fresh bottoms, somewhere between $55,000 to $58,000, a fresh upswing may begin, attracting fresh liquidity. Once, the rally comfortably surpasses the neckline of the cup and handle pattern at $75,000, a breakout could elevate the levels beyond $78,000 in the second half of 2024. 

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