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Bitcoin could eventually settle for a $56,000-$60,000 price floor for this cycle, a popular crypto analyst proposed. The move comes even as the premier cryptocurrency attempts a short-term comeback and has outperformed other markets amid the ongoing crisis in the Middle East. The analyst argues that this base support level could serve as a launchpad for the next bull market.
Bitcoin is currently experiencing a cautious recovery above the $70k level and revisited the $75k resistance just a couple of days ago. However, the short-term fluctuations are within range and of little consequence to the cryptocurrency’s long-term outlook.
Bitcoin to Follow 9-Year Trendline
Ali Charts, the analyst in question, tweeted this chart:
Image Source: XAccording to Ali, there is a rising trendline support trendline originating back in 2017. It has acted as a reliable floor during key market cycles. Historical interactions on this line have consistently preceded strong bullish rallies:
- The 2017 interaction fueled an explosive 963% gain.
- In 2018, a bounce from the trendline sparked a 261% price increase.
- In 2020, the support triggered a massive 1,126% rally.
- Most recently, the 2022 touch led to a 660% increase.
However, Bitcoin traders may not expect a major price reversal anytime soon, as it is a weekly price activity chart that has been zoomed out considerably to allow over 9 years of data. If the analysis holds, we have yet to convincingly touch the price floor during the recent downturn. The cryptocurrency briefly kissed the $60k level during the February 05 price drop and has since kept away from it.
Based on Ali’s predictions, the cryptocurrency is likely to post a price drop in the near future to activate a floor between the $56,000-$60,000 range. It may stay around that level for a while before building momentum to launch a new bull run in the ensuing years.
Twitterati Respond
X users presented a wide range of responses to Ali’s analysis. One tweeted that the range provided by Ali is on the more ambitious side, and the cryptocurrency is likely to drop to as low as $38k in the process:
Image Source: XAnother user, however, tweeted that the cryptocurrency is extremely oversold and that the next bull market after the current bottom will be epic:
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Source: https://zycrypto.com/56000-bitcoin-price-floor-could-be-used-as-launchpad-for-the-next-bull-market/
