Este artículo también está disponible en español.
Crypto Analyst Daan Crypto Highlights Bitcoin Rainbow Chart Insights
Crypto analyst Daan Crypto has brought attention to a Bitcoin Rainbow Chart, offering valuable insights into the current price action of Bitcoin. According to the analyst, Bitcoin needs to sustain above the $60,000 mark to initiate a bullish reversal.
Bitcoin Needs To Break Above $60,000
In a recent post on X (formerly Twitter), Daan Crypto emphasized that Bitcoin must surpass the $60,000 threshold to experience a bullish reversal and potentially reach new highs in this market cycle. The analyst pointed out that Bitcoin is still trading in the dark green region on the Rainbow chart, struggling to maintain the $60,000 range.
Related Reading
Source: X
As Bitcoin battles to break above the $60,000 mark, Daan Crypto highlighted the possibility of Bitcoin dropping below $51,000, which is represented by the blue area on the Rainbow chart. According to the analyst, this drop would present an excellent buying opportunity, as the blue area has historically been a favorable accumulation zone in higher timeframes.
Bitcoin’s price action has been relatively subdued since reaching a new all-time high (ATH) of $73,000 in March earlier this year. This has led to concerns about whether the bull market is over and if the crypto market is gradually entering a bear market. However, Daan Crypto has reassured that the best is yet to come for Bitcoin.
In another post on X, the crypto analyst remarked that the past six months might not be as unusual despite Bitcoin’s price action. He explained that this market cycle is unique, offering insights into why Bitcoin’s price has remained stagnant since March. Notably, Bitcoin achieved a new ATH before the halving event in April, which is unprecedented.
According to Daan Crypto, Bitcoin is technically still ahead of where it would have been in previous cycles. This implies that Bitcoin is pausing to consolidate and resynchronize with its previous halving cycles. Another crypto analyst, Rekt Capital, echoed a similar sentiment, warning that Bitcoin’s failure to consolidate could lead to an accelerated market cycle.
More Liquidity Will Soon Flow Into BTC
Arthur Hayes, the co-founder of the BitMEX crypto exchange, recently expressed his anticipation of more liquidity flowing into Bitcoin. Hayes predicts that Bitcoin’s price might rise if the current trends continue. His bullish outlook is based on the macroeconomic environment.
Related Reading
Hayes noted that Janet Yellen, the US Treasury Secretary, released a statement over the weekend, asserting that the US economy is on track for a soft landing despite the recent weak job reports. Consequently, the crypto market is expected to recover if Yellen and the US Federal Reserve pursue quantitative easing (QE).
At the time of writing, Bitcoin is trading at around $54,800, reflecting an increase of over 1% in the last 24 hours, according to data from CoinMarketCap.
BTC price makes a play for $55,000 | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com
