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▲ Bitcoin (BTC)/AI generated image
An analysis suggests that Bitcoin (BTC) has re-entered a historical buying zone that appeared just before past parabolic rallies, but the risk of a drop to $70,000 still remains on short-term charts, increasing market tension.
According to cryptocurrency specialized media NewsBTC on May 30 (local time), crypto market commentator Vivek stated in an X (formerly Twitter) post that Bitcoin has entered the optimal buying zone for this cycle. He claimed that this zone is similar to the buying zones that appeared before Bitcoin surged by 1,700% and 660% respectively during the 2018 and 2022 bear markets.
Vivek suggested a parabolic rally as the next trend, stating that the same structure has reappeared. NewsBTC reported that Bitcoin entered this buying zone after recently falling to the early $70,000s. However, crypto analyst Altcoin Sherpa stated that the current low-timeframe trends do not provide enough conviction, and there is still a possibility of a drop to $70,000 or even lower.
Bitcoin rose above $73,000 the previous day after former US President Donald Trump mentioned lifting the Strait of Hormuz naval blockade and deciding on a US-Iran agreement. However, Trump has not announced a final decision on the agreement, and Iran has confirmed the existence of an agreement but has not yet ratified it, NewsBTC reported.
Analysis also emerged suggesting the possibility of entering a bear market. Crypto analyst Colin stated in an X post that Bitcoin has historically formed bear market bottoms after falling at least 77% from its previous highs. He explained that a 70% drop from the October high of $126,000 last year could push Bitcoin down to $38,000.
Colin added that if a bear market bottom forms above $40,000, it could be seen as a stronger structure than past bear market lows. He also analyzed that the delayed effect of extremely low crude oil inventories could drag down Bitcoin prices in the future, and the next local high for the S&P 500 could coincide with an oil price breakout. NewsBTC reported that Bitcoin was trading at approximately $73,300 at the time of writing, down on a 24-hour basis.
*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.*
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