Is it time for new ATHs or is the correction not over yet?

TL;DR

Bitcoin price rose from below $54,000 to above $65,000, with analysts expecting new highs if it holds above certain resistance levels. Some are warning of a possible near-term correction, noting a specific sell signal on the 4-hour chart. Where is BTC headed?

The major cryptocurrency has been on a tear in recent days, with its price rising from less than $54,000 on July 5 to more than $65,000 today (July 16). It was traded in the last few hours, which is currently worth about $63,300 (according to CoinGecko data).

BTC Price, Source: CoinGecko

According to numerous industry participants, the impressive rally has marked the end of the correction witnessed at the beginning of the month, with some expecting further price peaks in the following months.

Popular X user Michael van de Poppe predicted a new all-time high in the third quarter of 2024 as long as BTC stays above the major resistance level of $60,000.

JAVON MARKS and Jelle were also upbeat. The former stated that the leading digital asset is “fulfilling the regular bullish divergence pattern” and appears to have shown a reversal to the upside. “This may just be the beginning for Bitcoin,” the analyst added.

The regular bullish divergence pattern occurs when price makes lower lows, but technical indicators such as the Relative Strength Index (RSI) form higher lows. The combination suggests that downward momentum is weakening and a move to the upside may be imminent.

Jelle surmised that BTC might be forming a “three white soldiers” pattern – a bullish candlestick pattern that indicates a strong reversal moment.

However, some analysts suggested that BTC is not necessarily out of the woods yet. X user Ali Martinez argued that the TD Sequential is showing a sell signal on the asset’s 4-hour chart, meaning a brief correction could be on the cards.

The aforementioned analysis tool, developed by Tom DeMark, is used to identify potential turning points by signaling periods of trend exhaustion. It consists of nine consecutive candles, each of which must close more than the four candles closed before. Ali noted that this was not the case with the last candle, which showed BTC falling from $65,000 to $64,000.

The Ultimate Bulls

Other well-known figures, including popular user X Crypto Rover and former White House official Anthony Scaramucci, have recently predicted that BTC could reach the $100,000 mark in the coming months.

The former believes that the eventual launch of spot ETH ETFs in the United States will be among the price catalysts. The US SEC approved eight such products earlier this year and they are expected to begin trading later this month.

According to Scaramucci, FTX’s potential refund of billions of dollars to aggrieved investors could be among the bullish elements. He believes that almost half of the people reimbursed will jump back on the crypto bandwagon based on their loyalty to the industry.

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