As Bitcoin struggles to beat and find a firm grip above the $41,000 ceiling, its recent 5-day consecutive dip creates a more bullish scenario to analysts who perceive the pullback healthy before an upward thrust.
On Friday, the asset’s price managed to break the resistance closing strongly above the area only for the price to slip back into the four-month range the next day in what created a fake-out picture.
According to Birb of the BirbNest, the recent pullback is depicted as spring before price makes a thrust up which could be parabolic, based on past performance. On Tuesday, the crypto analyst shared his thoughts on the ongoing price drip stating that he expected price to find support along the $36,000 area.
He predicted that should price find the support, a range-within-a-range scenario would likely unfold with price juggling in the $36,000-$41,000 area for some days before a strong breakout and sustained bullish parabolic move.
According to him, Friday’s daily “frost” candle which turned out to be a fake-out was also telling as it signified strong bullish strength in an area where price showed weakness before.
Referring to the Stochastic Oscillator and Relative Strength Indicator (RSI) golden cross, he also noted that Bitcoin’s price was already oversold, pointing to the weekly chart, in a set-up last witnessed in 2019 when the asset was trading in the $3,000-$6,000 range.
“The weekly timeframe is extremely oversold. It is actually confirmed with a bullish crossover like from the curve of the momentum for a bullish upside reversal” he said
The crypto pundit also said that Bitcoin’s short-term volatility is expected to come into play with the range before we could see a thrust towards $58,000 hopefully before August ends and even higher within the year joining a long list of investors who believe it could hit $100,000 this year.
The asset which has dropped more than 12% since Sunday, wiping out its entire last week’s almost entire gains after making a shot at 42,000 is currently trading just below $38,000 thanks to factors such as the Infrastructure bill whose whole crypto tax consensus mystery is thought to have distressed Bitcoin’s price.