Bitcoin Holds Above Key Support Level of $66,000

Bitcoin (BTC) has solidified its position above the critical support level of $66,000, leading some cryptocurrency traders to express confidence and optimism about BTC. Some even doubt the possibility of a significant correction, claiming that a local bottom has already formed.

Currently trading at $67,188, Bitcoin has seen a 10.2% increase over the past 7 days and a 4.73% increase over the past 30 days. Anonymous trader Rekt Capital observes that BTC has undergone a deep and prolonged pullback, suggesting that the market may be approaching a bottom. According to CoinMarketCap data, Bitcoin’s price dropped from $66,421 on April 24 to $56,792 on May 2, representing a 15% decline. However, just four days later, the price rebounded above the key support level at $65,146.

This pattern is common during bull markets, where rapid recoveries follow sudden and sharp adjustments. Cryptocurrency trader Mags refers to “market cycle psychology,” a popular chart known as the Wall Street Cheat Sheet, which indicates that Bitcoin is entering the “belief” phase of the cycle. During this phase, investor confidence in the market’s upward trend strengthens.

Analysts and observers closely monitor signs of further Bitcoin price corrections, especially after the halving event on April 20. Historical halving events serve as precedents for such analyses. After the Bitcoin halving in May 2020, the price surged from $9,383 to $58,958 by May 2021. However, one month later, Bitcoin experienced a 40% pullback, dropping to $35,484 in June.

Sentiment: Positive