Bitcoin's 4-Week Rally: Will it Break Through the $88,000 Sell Wall in May?

▲ Bitcoin (BTC) ©CoinReaders

Bitcoin (BTC), the leading cryptocurrency, which has continued its relentless surge for four consecutive weeks, is drawing market attention with a bold prediction from a renowned analyst that it could break through a massive sell wall and soar up to $88,000 in the upcoming May.

According to the cryptocurrency media Finbold on April 27 (local time), virtual asset expert Michaël van de Poppe predicted, based on pure technical analysis, that Bitcoin would rally to a liquidity zone between $85,000 and $88,000 in May, followed by a correction or consolidation. He cited Bitcoin's stable hold of the $71,438 to $73,408 range, which acted as strong resistance in March, as a basis for the bullish market.

The analyst emphasized that for Bitcoin to reach such a rosy target price, buyers must convert the massive sell wall formed around $80,646 into a firm support level. However, if the upward trend breaks near the current resistance level of $79,127, the bullish target for May could be invalidated instantly. Moreover, with a potential double-top pattern forming over the past week and the Relative Strength Index (RSI) showing bearish divergence, the potential for a downward reversal still remains.

The media analyzed that the direction of Bitcoin's price in May will largely depend on leverage in the derivatives market and the performance of the spot market. Since April's price increase was primarily driven by leveraged investors, for an additional rally to continue next month, buying pressure in the spot market, through Bitcoin spot exchange-traded funds and other means, must overwhelm net selling pressure. If spot demand slows, a fragile, leverage-driven uptrend could quickly lead to a sharp correction.

Changes in macroeconomic indicators and the regulatory environment are also identified as key variables that will shake the market in May. Monetary policy decisions by major central banks, including the US Federal Reserve, Bank of Japan, Bank of Canada, Bank of England, and European Central Bank, scheduled for this week, are expected to have a direct impact on market liquidity. Furthermore, the schedule for the committee vote on the Clarity Act, a US cryptocurrency market structure bill, is also considered a major point of interest that could maximize Bitcoin's price volatility.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*