The BTC price has stabilized below $57,000, while ETH stole the show with a powerful rally above $3,000.
The price of bitcoin continues to struggle around $57,000, with the world’s largest cryptocurrency by market capitalization dominating Ethereum. While the latter’s price jumped more than 30% last week to a record $3,457, BTC has fallen 3.3% and now appears poised to drop below $56,000.
While the drop threatens to turn into more losses and the flagship cryptocurrency looks vulnerable to further losses, two analysts say bitcoin remains in a bullish cycle.
According to analysts, the pullback and sideways movement will end with another major rally that could lift BTC above its current all-time high of around $65,000.
The esteemed Michael Van de Poppe recently showed in a video analysis that several signals point to another rally for bitcoin in this market cycle. According to the analyst, the ongoing influx of institutional money and widespread cryptocurrency proliferation suggest massive demand that could push the BTC price above the $100,000 level.
Another analyst, Plan B, also notes that bitcoin could reach the $100,000 mark if a bullish signal appears on the cross-asset (X) model. According to the analyst, the appearance of a “new point” on the chart is slightly lower than in the previous six months. This pattern indicates a potential uptrend that could lead to an increase in BTC prices in the coming months.
Bitcoin Price Forecast
Bitcoin has been trading lower since hitting broad resistance around $58,870, as shown in the 4-hour chart below. The BTC/USD pair is trying to bounce off the support of its 50-day moving average ($55,659) after hitting a low of $54,653 in the early morning hours of May 4.
The rebound from the intraday low came at the uptrend channel support line that formed after falling below $50,000.
To advance, buyers need to break above the 20-day exponential moving average ($56,869). That will allow them to target the channel midline near $58,000 and the 0.618 Fib level ($58,177), which will likely strengthen the rally.
If that happens, the next barrier is at $61,066 and $64,898.
In contrast, immediate support is at 0.5 Fib ($55.945). A reversal below the 50-day moving average could cause prices to pull back to the next support area at $53,000.
If the uptrend regains control, BTC/USD will resume rising inside the channel. However, another downward move would likely cause prices to fall to the 0.236 Fib level ($52,218) and the critical $50,000 level.