25 June 2024
Bitcoin (BTC) faced a sharp price drop as the last week of Q2 began. The dramatic decline saw the flagship cryptocurrency momentarily lose its support above the $60,000 level on Monday.
The drop left many investors wondering whether the bullish rally is over. However, crypto analysts remain optimistic about BTC’s performance and consider the drag down to be part of the quarterly retest.
Is Bitcoin Headed For A ‘Chop Summer’?
On Tuesday, crypto analyst Jelle made a case for Bitcoin’s bullish momentum. Amid the bearish sentiment from some community sectors, the crypto investor believes BTC’s bull run isn’t over.
Per Jelle’s posts, Bitcoin has been holding key support levels despite its brief fall under $60,000. Additionally, the largest cryptocurrency by market capitalization displays a “still firmly bullish” higher-timeframe structure.
This structure exhibits BTC’s performance consistently, making higher highs (HH) and higher lows (HL) for the last year and a half. Per the chart, the price drop remains a higher low than the May 1 retrace, which remains the deepest this cycle.
Jelly criticized those who send “hate” to bullish investors, highlighting that “Bitcoin has consistently moved higher for nearly 20 months.” He suggested that “In a bull market, conviction pays.”
Moreover, he pointed out that the flagship cryptocurrency exhibits a bullish flag below all-time high levels. To the analyst, this consolidation could play out similarly to the consolidation below the $30,000 resistance range.
If it were to happen, Bitcoin would see a “chop summer” below the new key resistance, the $74,000 ATH price, before breaking out. According to Jelle, the breakout could cost BTC $100,000.
Quarterly Retest: ‘Red Monday, Green Week’?
Despite the long-term forecast, Jelle set a $63,500 target for this week. During Monday’s drop, the analyst stated that BTC’s performance was playing out like it was in 2016-2017.
Furthermore, pointed out that Bitcoin’s key support level of $58,000 is “doing its job” during this “quarterly retrace.” To Jelle, BTC can “lock in a lower-timeframe higher low” this Tuesday.
As a result, the analyst considers that bulls can run the flagship cryptocurrency to $63,500 by the end of the week. Jelle also believes Bitcoin could surpass its weekly open, making it a “Red Monday, Green Week.”
Altcoin Sherpa also suggested that BTC could reach the weekly open. Per the analyst, the current range remains a “bounce region,” which could return the price to $64,000. He expects this performance to relieve altcoins, although he doesn’t consider it “THE bottom.”
Sherpa believes there will be more volatility before the local bottom: “4h EMAs all bearish; expecting price to pull back when we see it interact with them at 64kish.” To the analyst, BTC’s local bottom will come in the next few days and could test the May 1 retrace levels.
At the time of writing, Bitcoin is trading at $61,700, representing a 4.5% recovery from Monday’s pullback.