Bitcoin going to $60,000? Is this the last dip before a rebound?

Bitcoin heads towards a 'decisive support line'... Is the last dip before a rebound opening up?

▲ Bitcoin sharp drop / ChatGPT generated image ©

According to the cryptocurrency media outlet Finbold on April 12 (local time), the possibility has been raised that Bitcoin (BTC) may undergo one more short-term decline before a strong rally, while maintaining its long-term upward structure.

According to the analysis, the key is a rising trend line, dubbed the 'parabolic guard,' which has continued for over 10 years. This trend line connects major past lows and has been a crucial support line triggering major Bitcoin bull runs, with massive surges following each touch of this area. Indeed, surges of approximately 963% in 2017, approximately 261% in 2018, over 1,100% in 2020, and approximately 660% in 2022 began in this zone.

Currently, Bitcoin is again approaching this rising trend line, with the anticipated support zone suggested to be between $56,000 and $60,000. The recent price compression following the adjustment after the $126,000 peak is interpreted as a structure similar to past pre-rally patterns.

Short-term indicators are mixed. Bitcoin has fallen by about 1.5% over 24 hours from the $71,580 level, but has maintained a gain of over 4% on a weekly basis. The price shows support above the 50-day simple moving average of $69,505, but remains below the 200-day simple moving average of $89,298, indicating that the long-term trend has not yet fully recovered.

The Relative Strength Index is at 61.58, not yet entering the overbought zone, suggesting there is room for upside but a lack of strong momentum. This indicates a transitional phase where the market has not yet confirmed its direction and is preparing for the next move.

Ultimately, the next few weeks are expected to be a watershed moment. The analysis suggests that if Bitcoin confirms this long-term trend line as support, there is a high probability that a powerful bull market will unfold again, similar to historically repeated patterns.

*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.*