Bitcoin has finally bottomed out... Last 'buy' signal detected before breaking $85,000

▲ Bitcoin (BTC)

Bitcoin (BTC) has entered a key zone that could signal the end of its long-term downtrend, with the possibility of a major bull market emerging simultaneously, coinciding with a shift in institutional regulation.

According to the crypto-focused YouTube channel Paul Barron Network on April 27 (local time), host Paul Barron analyzed that Bitcoin has settled above its 20-week moving average on a weekly basis, indicating the formation of a bottom in its long-term downtrend cycle. However, he emphasized that further price expansion is needed to confirm an uptrend, as there have been instances of sharp declines after similar bounces in the past. He added that a cautious approach is required until a bullish reversal is confirmed on a daily basis.

The first hurdle for a bullish reversal is the resistance zone between $80,000 and $81,000. Subsequently, the 200-day moving average, located around $84,000 to $85,000, is identified as a critical turning point. Barron explained, “Only by breaking through this zone and converting it into support can we declare the beginning of a full-fledged bull market.”

Institutional factors are also boosting market expectations. The U.S. crypto market structure bill (CLARITY) is reportedly likely to pass as early as June. Mike Novogratz, CEO of Galaxy Digital, predicted that the bill could go through committee procedures in May and reach President Donald Trump's signing stage by June. Brian Armstrong, CEO of Coinbase, also emphasized the need for the bill's passage, citing bipartisan support.

Support zones for a bearish scenario were also presented. The primary support line is the $71,000 to $75,000 range. If this range breaks, the Fibonacci retracement levels of $64,000 to $67,000 are highly likely to act as the final defense line.

The future direction of the market is expected to be determined in conjunction with macroeconomic variables. External factors such as the release of the Purchasing Managers' Index, statements from Federal Reserve officials, and tensions in the Middle East could increase volatility. Bitcoin is currently undergoing its final adjustment phase to form a new trend at the intersection of technical shifts and institutional changes.

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