Bitcoin (BTC) faced a sharp price drop at the beginning of the last week of the second quarter. The dramatic decline caused the top cryptocurrency to momentarily lose its support above the $60,000 level on Monday.
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The drop has left many investors wondering whether the bull rally is over. However, crypto analysts remain optimistic about BTC’s performance and consider the halving as part of the quarterly retest.
Is Bitcoin Heading for a ‘Busy Summer’?
On Tuesday, crypto analyst Jelle defended Bitcoin’s bullish momentum. Amid bearish sentiment from some community sectors, the crypto investor believes BTC’s bull run is not over yet.
According to Jelle posts, Bitcoin has been holding important support levels despite its brief drop below $60,000. Furthermore, the largest cryptocurrency by market capitalization displays a “yet firmly bullish” superior term structure.
This structure displays BTC’s performance consistently, reaching higher highs (HH) and higher lows (HL) over the last year and a half. According to the chart, the price decline remains at a higher low than the May 1 retracement, which remains the deeper this cycle.
Jelly criticized those sending “hate” to bullish investors, highlighting that “Bitcoin has risen consistently for nearly 20 months.” He suggested that “In a bull market, conviction pays.”
Furthermore, he highlighted that the main cryptocurrency exhibits a optimistic flag below all-time high levels. For the analyst, this consolidation could be similar to consolidation below the $30,000 resistance band.
If this were to happen, Bitcoin would see a “summer cut” below new key resistance, the ATH price of $74,000, before breaking out. According to Jelle, the breakout could cost BTC $100,000.
New quarterly test: ‘Red Monday, Green Week’?
Despite the long-term forecast, Jelle has set a target of $63,500 for this week. During Monday’s dip, the analyst stated that BTC’s performance was developing like in 2016-2017.
Furthermore, pointed that Bitcoin’s key support level of $58,000 is “doing its job” during this “quarterly pullback.” For Jelle, BTC could “lock in a lower and lower time frame” this Tuesday.
As a result, the analyst considers that bulls could take the main cryptocurrency to $63,500 by the end of the week. Jelle also believes that Bitcoin could surpass its weekly open, making it a “Red Monday, Green Week.”
Altcoin Sherpa also suggested that BTC could hit the weekly open. According to the analyst, the current range remains a “rejection zone,” which could send the price back to $64,000. He expects this performance to ease altcoins, although he doesn’t consider it “the bottom.”
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Sherpa believes there will be more volatility before the local background: “4h EMAs all bearish; Expecting the price to pull back when we see it interact with them at 64kish.” For the analyst, BTC’s local bottom will arrive in the next few days and could test the May 1 retracement levels.
At the time of writing, Bitcoin is trading at $61,700, representing a 4.5% recovery from Monday’s pullback.
Featured image from Unsplash.com, chart from TradingView.com