Bitcoin, 67-day floor consolidation ends...Preparing to enter the biggest bull market since 2020

▲ Bitcoin (BTC)

Bitcoin (BTC) has concluded a tedious correction phase following the end of quantitative tightening and is now on its final test before entering the largest bull market since 2020.

Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, stated in a video uploaded to his channel on May 1 (local time) that "the post-quantitative tightening adjustment is nearing its end," assessing that Bitcoin is poised for a significant rally.

He asserted, "The process of normalizing the impact of the Federal Reserve's (Fed) record liquidity withdrawal on the market is currently underway," and "Bitcoin's price movement has completed its floor consolidation, showing a similar pattern to when quantitative tightening ended in the past."

Compared to the 2019 instance, where price adjustments continued for approximately 140 days after quantitative tightening ended, this cycle is showing a relatively faster recovery. Gambardello explained, "A low was formed in about 67 days after quantitative tightening ended in early December, and it is currently in a structural formation phase for entering a full-fledged bull market." Institutional investors, often referred to as 'smart money,' quietly accumulated assets while retail investors, gripped by fear, left the market, preparing for the next upward cycle.

If Bitcoin breaks through the $80,000 resistance level and closes a weekly candle above the 200-day moving average of $84,000, the long-term downtrend will be completely over. Currently, Bitcoin is fluctuating, using the 20-day moving average around $75,000 as support, and is consolidating upward energy. On the downside, the Fibonacci support level between $64,000 and $67,000 holds firm, making further sharp declines unlikely.

The temporary contraction in macroeconomic indicators such as the Purchasing Managers' Index is merely a phenomenon caused by unexpected variables like Middle East tensions and does not undermine the long-term expansion trend. The economic policies of US President-elect Donald Trump and the potential addition of Kevin Warsh to the Federal Reserve are expected to create a favorable environment for the virtual asset market. Gambardello predicted that as geopolitical risks subside, the market would experience a powerful rally that would exceed most expectations.

Bitcoin is preparing for a new leap at the intersection of technical indicators and policy changes. With retail investor sentiment currently subdued, it is highly likely that this is the starting point of a true bull market led by institutional capital. Gambardello emphasized the importance of not being swayed by short-term volatility and focusing on fundamental shifts in supply and demand, adding that this correction period could be the last opportunity to create billionaires.

*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.*