The $24,000 BTC Bullseye: Is Bitcoin Headed For A Summer Swoon?
Bitcoin (BTC) has been on a rollercoaster ride for weeks. However, the largest cryptocurrency in the market seems poised to breach the $30,000 mark again if it continues its bullish momentum. Nevertheless, cryptocurrency experts are eyeing a key technical price level that could signal further volatility for the world’s most popular cryptocurrency.
According to crypto expert and Economist Mr. Ben Lilly, the $24,000 price level is acting like a bullseye for Bitcoin, signaling a potential price dip in the coming months. Lilly’s analysis is based on Bitcoin’s 200-day moving average (200d MA), which he believes is a key technical indicator of the cryptocurrency’s price cycles.
Bitcoin Braces For Volatility
Each halving cycle for Bitcoin, which occurs roughly every four years, begins with the 200d moving average (MA) failing, as shown in a chart shared by Lilly. This failure tends to dictate multi-year price cycles, and Lilly believes history repeats itself.
Based on this theory, Lilly predicts that the failure of the 200d MA level could happen sometime between June and August of 2023, which could result in a dip below $24,000. This prediction is supported by the fact that low-leveraged liquidity pools are building at the level where the 200d MA will likely be in June, which Lilly has marked with a bullseye in his theoretical analysis.
If the history of Bitcoin’s price cycles is any guide, then this retest is likely to fail, which could result in further volatility for the cryptocurrency. Lilly expects this failure to occur with end-of-June options, citing the recent unwind of May contracts as a subtle sweep lower.
However, it’s important to note that the 200d MA is rising faster than before, as each passing day removes one day from the November lows and replaces it with a recent price. This acceleration can be seen in the last week on the 200d MA, which is ticking up faster.
Still On The Path To Higher Prices?
On the other hand, despite recent volatility in the cryptocurrency markets, one expert remains optimistic about Bitcoin’s long-term prospects. Cryptocurrency analyst and trader Jackis believes that the current market conditions indicate a long re-accumulation period before Bitcoin moves higher.
According to Jackis, Bitcoin is still making higher lows and is above all critical moving averages, which is a positive sign for the cryptocurrency’s long-term growth. While there may be short-term downside movements, Jackis believes these are simply shakeouts and that the big picture remains bullish.
Jackis sees a big move coming in the future, which he has mentioned in previous posts. His bet remains on the upside, and he now sees no clear signs of bearishness in the market.
One key factor that Jackis points to is the monthly close, which recently occurred with a sweep. This provides the biggest market picture; for now, Jackis does not see any bearish signs.
As of this writing, BTC is currently trading at $26,900, having filled the gap on the Chicago Mercantile Exchange (CME), previously highlighted by NewsBTC as a crucial level to observe before the uptrend could continue. Nevertheless, there is still a likelihood of further downside movements, with many industry experts anticipating high levels of volatility.
Featured image from iStock, chart from TradingView.com