Time for New ATHs or Correction Not Over Yet?

TL;DR

• Bitcoin’s price surged from below $54,000 to over $65,000, with analysts expecting new highs if it stays above certain resistance levels.
• Some caution a possible short-term correction, noting a specific sell signal on the 4-hour chart.

Where is BTC Headed?

The primary cryptocurrency has been on a tear in the past few days, with its price rising from less than $54,000 on July 5 to over $65,000 earlier today (July 16). It retraced in the last couple of hours, currently worth around $63,300 (per CoinGecko’s data).

According to numerous industry participants, the impressive rally has marked the end of the correction witnessed at the start of the month, with some expecting new price peaks in the following months.

The popular X user Michael van de Poppe forecasted a new all-time high in the third quarter of 2024 as long as BTC stays above the major resistance level of $60,000.

JAVON MARKS and Jelle were also bullish. The former claimed the leading digital asset “fulfills the Regular Bullish Divergence pattern” and seems to have displayed a reversal to the upside. “This may only be the start for Bitcoin,” the analyst added.

The Regular Bullish Divergence pattern occurs when the price makes lower lows but a technical indicators like the Relative Strength Index (RSI) forms higher lows. The combination suggests that the downward momentum is weakening, and an upside move may be imminent. 

Jelle assumed that BTC could be forming a “three white soldiers” pattern – a bullish candlestick pattern that signals a strong reversal moment.

However, some analysts suggested that BTC is not necessarily out of the woods yet. X user Ali Martinez argued that the TD Sequential presents a sell signal on the asset’s 4-hour chart, meaning a brief correction might be in the cards. 

The aforementioned analysis tool, developed by Tom DeMark, is used to identify potential turning points by signaling periods of trend exhaustion. It consists of nine consecutive candles, each of which must close higher than the close four candles earlier. Ali noted that this wasn’t the case with the last candle, which showed BTC’s dip from $65,000 to $64,000. 

The Ultimate Bulls

Other well-known figures, including the popular X user Crypto Rover and the former White House official Anthony Scaramucci, have recently predicted that BTC may reach the $100,000 milestone in the following months.

The former thinks the eventual launch of spot ETH ETFs in the United States will be among the price catalysts. The US SEC approved eight such products earlier this year, and they are expected to begin trading later this month.

According to Scaramucci, FTX’s potential repayment of billions of dollars to harmed investors could be among the bullish elements. He believes nearly half of the reimbursed people will jump on the crypto bandwagon again based on their loyalty to the industry.