Bitcoin Analyst Set Sight On $79,591: Urges Traders To Be Patient

Bitcoin Analyst Set Sight On $79,591: Urges Traders To Be Patient

While Bitcoin prices hover around 15% below their all-time highs, with some skeptics predicting more losses, one analyst on X expects the coin to bounce strongly, even breaking above all-time highs.

Taking to X, the trader argues that Bitcoin has yet to breach the Golden Ratio Multiplier’s Cycle Top, currently sitting at $79,591. Supposedly, the analyst continues, this target price increases the longer it remains unchallenged. 

Bitcoin price action favors bulls | Source: Analyst on X

Bitcoin Traders Need To Be Patient

So far, BTC is trending lower and is technically within a bear breakout formation following sharp losses on April 13. As the coin struggles for gains and is boxed inside the bear bar, the odds of further upswings like those registered in Q1 2024 remain muted. 

However, even as BTC bulls are muted, the analyst emphasizes the prices are “respecting data points” despite prices dumping lower and taking longer to break higher.

Most traders expect prices to rise higher following March 2024’s impressive surge. However, the analyst believes traders need to have patience.  

Bitcoin price trending downward on the daily chart | Source: BTCUSDT on Binance, TradingView

Looking at how BTCUSDT prices are unfolding, it is clear that momentum is fading, and participation is low. CoinMarketCap data shows that trading volume on the last day is flat, at $46 billion. 

Overall, trading volume–a measure of engagement and trader interest– has dropped since mid-March, when the coin soared to all-time highs of approximately $74,000.

Whales Are Keeping Off From The Market

Parallel data from IntoTheBlock reveals that addresses holding at least 0.1% have also been slowing down in their accumulation, making the drop even more severe.

See also  Dogecoin (DOGE) Primed for Potential Price Surge, Analyst Suggests – $0.18

According to a CoinDesk report, when BTC fell on March 19, prices bounced strongly on March 20 following aggressive buying pressure whales. IntoTheBlock data showed they bought 80,000 BTC, forcing prices back to over $71,000.

Technically, by tracking whale movements, traders and investors can gauge overall market sentiment and their confidence for gains. This, in turn, could impact the sustainability of trends.

Their heavy involvement could precede sharp price gains, lifting the broader crypto markets. The fact that whales appear to be keeping off could suggest that they expect prices to drop even more. 

Moreover, other factors, such as the pace of inflows into spot Bitcoin exchange-traded funds (ETFs), point to a bleak future. CryptoQuant data shows that inflows have been stagnant in the past trading week. At the same time, IBIT, the spot BTC ETF offered by BlackRock, has been the only product out of the eight registering inflows.

Leave a Reply

Your email address will not be published. Required fields are marked *