Crypto analyst Daan Crypto has pointed out a Bitcoin Rainbow Chart, which offers insights into the current price movements of the cryptocurrency. The analyst also indicated that Bitcoin must maintain its position above $60,000 to initiate a bullish reversal.
Bitcoin Must Surpass $60,000
In a post on X (formerly Twitter), Daan Crypto noted that Bitcoin needs to rise above $60,000 to achieve a bullish reversal and potentially reach new heights in this market cycle. He remarked that Bitcoin continues to trade in the dark green area on the accompanying Rainbow chart as it attempts to retain the $60,000 zone.
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As Bitcoin struggles to break through $60,000, Daan Crypto raised the possibility that the leading cryptocurrency could dip below $51,000, represented by the blue area on the Rainbow chart. The analyst suggested this would signify an excellent buying opportunity, noting that the blue area has historically served as a favorable accumulation zone in longer timeframes.
Bitcoin’s price action has remained moderate since reaching a new all-time high (ATH) of $73,000 back in March. This has led to concerns that the bull market may have peaked and the crypto market might be slowly transitioning into a bear market. However, Daan Crypto has provided some comfort, suggesting that better days for Bitcoin are still to come.
In another post on X, the analyst expressed that he does not find the past six months particularly unusual despite Bitcoin’s pricing movements. He suggested that this cycle is unlike any other, providing insights into a reasonable explanation for the leading cryptocurrency’s stagnant price since March. Bitcoin achieved a new ATH prior to the halving event in April, which is a historically unprecedented occurrence.
Along these lines, Daan Crypto indicated that Bitcoin is still technically further along than it would have been in prior cycles. This implies that the cryptocurrency may be pausing to consolidate and realign with previous halving cycles. Crypto analyst Rekt Capital previously shared similar thoughts, warning that Bitcoin’s failure to consolidate could lead to an expedited cycle.
Increased Liquidity Expected for BTC
Arthur Hayes, a co-founder of the BitMEX crypto exchange, recently mentioned that he foresees more liquidity flowing into Bitcoin. As such, he predicts that Bitcoin “might” rise if circumstances unfold as he anticipates. Hayes’ optimistic outlook is rooted in his macroeconomic perspectives.
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He highlighted that Janet Yellen, the US Treasury Secretary, issued a statement over the weekend asserting that the US economy is poised for a soft landing, despite recent weak job figures. Consequently, the crypto market is anticipated to rebound if Yellen and the US Federal Reserve pursue quantitative easing (QE).
Currently, Bitcoin is trading around $54,800, reflecting over a 1% increase in the last 24 hours, based on data sourced from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
