Bitcoin (BTC) price rose above the $60,000 mark, coinciding with a stock market rally amid weaker-than-expected US jobs data.
As a result, there is consensus that Bitcoin is ready for further gains and expert in cryptocurrency trading TradingShot has identified potential entry points for BTC investors.
In a TradingView In a May 3 post, the analyst initially suggested that Bitcoin’s recent decline to $56,000 brought it close to a critical support level at around $59,000. This move signals an ideal time for investors to buy before a parabolic rally.
In particular, the expert highlighted the behavior of the one-week commodity channel index (1W CCI), which is currently testing the top of its bullish cycle support zone. This behavior is reminiscent of previous instances, such as September 7, 2020 and March 20, 2017, which preceded parabolic rallies, making them optimal entry points for buyers.
Importance of the one-week moving average
The analyst also focused on Bitcoin’s closeness to the 20-week moving average (1W MA20), which is significant for the asset. According to the expert, this level has historically served as constant support during bullish cycles.
At the same time, TradingShot looked at past cycles, noting that the MA20 1W has only been violated three times, none during the 2015-2017 bull run, twice during the 2019-2021 period, and once during the current 2023-2024 run.
This suggests that the MA20 1W support level is technically the strongest support level encountered by Bitcoin prior to the ultimate MA50 1W, typically only broken during bearish cycles.
Top of the Bitcoin cycle
Elsewhere, with Bitcoin’s recovery, crypto analyst CryptoCon suggested that the first peak of the digital asset cycle could approach later this year, echoing patterns seen in 2017. Comparing current market dynamics to those of 2017, the analyst noted that both periods saw Bitcoin surpasses all-time highs in March.
However, in 2017, new ATHs emerged by late April or early May, indicating a potentially accelerated trajectory compared to the current one.
The market expert indicated that an extended correction around all-time highs could postpone the peak of the cycle, with projections aimed at mid-to-late 2025.
“To see our high at the end of 2025 as normal, the price would have to not reach new ATHs for 7 months, or until after November 28 this year,” the expert said.
Indeed, as most of the market expects a Bitcoin rally in the coming months, analysts believe that maintaining gains above $60,000 remains crucial. The asset rebounded after falling as low as $56,000 amid uncertainty over the Federal Reserve’s next monetary policy.
Bitcoin’s latest gains came as the US jobs report revealed a deficit. Employers added 175,000 jobs last month against expectations for an increase of 243,000. Wages rose 3.9% in the 12 months to April, below the expected 4.0% rise following a 4.1% rise in March.
This disappointment could push the Federal Reserve to cut rates sooner, potentially boosting risky assets like Bitcoin by reducing funding costs and weakening the value of fiat currencies like the US dollar.
Bitcoin price analysis
At the time of this writing, Bitcoin was trading at $63,170 with daily gains of nearly 8%. On the weekly chart, BTC rose less than 1%.
In conclusion, for Bitcoin to initiate a sustained rally, the cryptocurrency needs bullish momentum to take the asset to $65,000. However, Bitcoin currently remains vulnerable to a potential drop to $60,000.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.
