Bitcoin traded as high as $73,000 after a 9% rally over the past week, but the broader market still appears mired in a bear phase that has lasted more than six months. Historical patterns, however, suggest the recent price action could spark a substantial bullish rebound, offering mid- to long-term relief for investors.
Bitcoin Nears Key Support Level As Bulls Eye Historical Recovery Run
Renowned analyst Ali Martinez noted in an April 11 post that Bitcoin’s recent surge aligns with a retest of a long-standing ascending trendline he calls the “Parabolic Guard.” Over the past decade, touches of this trendline have consistently preceded major rallies. Martinez highlighted past examples: 2017 saw about a 963% gain after contact, 2018 a 261% rise, 2020 a 1,126% surge, and a 660% gain observed more recently. He places the Parabolic Guard between roughly $56,000 and $60,000—around 20% below the current price—and suggests a return to that area may be necessary to end the bear market and kick off a sustained recovery. According to Martinez, a retest would also likely slow accumulation by smart money ahead of the next leg up.
Bitcoin Market Overview
At the time of writing, Bitcoin was trading at $71,508, down 1.81% on the day. Daily trading volume fell about 27.35% to $26.35 billion. CoinCodex data indicates overall market sentiment remains heavily bearish and the Fear & Greed Index sits in extreme fear. CoinCodex analysts nevertheless expect the current bounce—helped by easing geopolitical tensions—to continue in the near term, projecting a five-day price target of $79,729.
Featured image from Freepik, chart from TradingView (BTC trading at $71,499 on the daily chart | Source: BTCUSDT chart on Tradingview.com)
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