After trading at nearly $112,000 to establish a new all-time high (ATH), Bitcoin has since slipped into a corrective phase losing over 7% of its value since then. Despite this market downturn, prominent crypto analyst with X username KillaXBT has tipped the premier cryptocurrency to regain its bullish form, and soon re-enter price discovery territory.
Furthermore, the analyst moves to reiterate that Bitcoin’s current uptrend can be described as sideliners’ rally. This is because despite a significant increase in M2 Money Supply signaling a rise in market liquidity, there is also low participation from investors and traders as indicated by the negative premium index and low funding rates.
This multiple developments suggests the present bullish momentum is built on long-term conviction by possibly institutional investors or market whales strengthening the potential for a sustainable price rally. From the trading chart presented, KillaXBT’s analysis suggested that Bitcoin’s price correction has created a monthly open trap just below the $104,000 at investors are advised to open a long position with a price target of $120,000.
However, the market expert also acknowledges the potential for a market upset noting that a decisive price close below $97,000 would nullify the purported bullish set-up. In such a scenario, KillaXBT proposes a recovery trade by opening another long position right below $97,000, targeting a rebound toward $109,000 to recoup losses and maintain upside exposure.
At the time of writing, Bitcoin trades at $104,519 after a price increase of 0.70% in the past day. Meanwhile, the asset’s trading volume is down by 34.21% suggesting a fall in market activity and transaction numbers.
