Since reaching an unprecedented high in January, Bitcoin (BTC) has faced challenges in maintaining a bullish stance, leading to a downtrend over the past two months. Market analyst Egrag Crypto suggests that the top cryptocurrency may continue to correct for a few more months before initiating a price surge.
Bitcoin’s 231-Day Cycle Suggests $175,000 Target By September
Following an initial price drop in February, Egrag Crypto theorized that Bitcoin could face a correction related to a CME gap, prior to a price rebound. However, the absence of strong bullish momentum in recent weeks has led to the conclusion that Bitcoin may be entrenched in a prolonged corrective phase.
Egrag’s latest insights indicate that Bitcoin’s current correction is in sync with a fractal pattern — a recurring price structure observed across various timeframes. This pattern is derived from a 33-bar (231-day) cycle where BTC transitions from a corrective state to an explosive price increase.
By analyzing previous cycles in relation to the current one, Egrag predicts that Bitcoin could potentially emerge from its recalibration by June. In this scenario, he anticipates the leading cryptocurrency to reach a market peak of $175,000 by September, indicating a potential increase of 107.83% on current prices.
To trigger this price surge, market bulls need to secure a breakout above the significant resistance level at $100,000. Conversely, any drop below the support range of $69,500-$71,500 could jeopardize this bullish setup and possibly signal the conclusion of the current bull market.
BTC Investors on Standby as Exchange Activity Declines
In related news, renowned crypto analyst Ali Martinez has noted a decrease in Bitcoin’s exchange-related activities, highlighting a waning interest among investors and lower network utilization. This trend suggests that investors are reluctant to deposit or withdraw Bitcoin from exchanges, likely due to uncertainty surrounding the asset’s near-term direction.
According to Martinez, Bitcoin is positioned for a trend change as investors await the next market catalyst. It’s noteworthy that Bitcoin displayed remarkable resilience in response to the new tariffs imposed by the US government on April 2. Data from Santiment indicates that BTC’s price only dropped by 4% in the hours following the announcement, a milder reaction compared to past tariff-related moves.
Since then, BTC has registered some price growth and is currently trading at $83,805, as investors are drawn to the crypto market, which has seen a $5.16 billion influx in the last 24 hours. Additionally, BTC’s trading volume has risen by 26.52%, standing at $43.48 billion.
Featured image from UF News, chart from Tradingview
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