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Crypto analyst Daan Crypto has highlighted a Bitcoin Rainbow Chart, which has provided insights into the crypto’s current price action. The analyst also suggested that Bitcoin needs to hold above $60,000 to make a bullish reversal.
Bitcoin Needs To Break Above $60,000
In an X (formerly Twitter) post, Daan Crypto suggested that Bitcoin needs to break above $60,000 to enjoy a bullish reversal and possibly reach new highs in this market cycle. The crypto analyst noted that Bitcoin was still trading in the dark green region on the accompanying Rainbow chart as it struggles to hold on to the $60,000 range.
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Meanwhile, as Bitcoin struggles to break above $60,000, Daan Crypto raised the possibility of the leading crypto dropping below $51,000, the blue area on the Rainbow chart. The crypto analyst suggested it would present an excellent buying opportunity, stating that the blue area has historically been a good accumulation area in higher timeframes.
Bitcoin’s price action has remained tepid since hitting a new all-time high (ATH) of $73,000 in March earlier this year. This has raised concerns that the bull market might be over and that the crypto market is slowly entering a bear market. However, Daan Crypto has provided some reassurance that the best is still yet to come for Bitcoin.
In another X post, the crypto analyst stated that he doesn’t feel like the past six months are that odd despite Bitcoin’s price action. He noted that this cycle is like no other, as he provided insights into a plausible reason why the leading crypto’s price has remained stagnant since March. Bitcoin hit a new ATH before the halving event in April, which has never happened before.
In line with this, Daan Crypto stated that Bitcoin is technically still ahead of where it would have been in previous cycles. This suggests that the crypto has stalled to consolidate and resynchronize with previous halving cycles. Crypto analyst Rekt Capital once echoed a similar sentiment while warning that Bitcoin’s failure to consolidate would lead to an accelerated cycle.
More Liquidity Will Soon Flow Into BTC
Arthur Hayes, the co-founder of the BitMEX crypto exchange, recently stated that he anticipates more liquidity to flow into Bitcoin. As such, he predicts that Bitcoin “might” rise if things continue to play out the way he expects. Hayes’ bullish prediction stems from his outlook on the macroeconomic side.
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He noted that Janet Yellen, the US Treasury Secretary, released a statement over the weekend in which she maintained that the US economy is heading towards a soft landing despite the recent weak job reports. Therefore, the crypto market is expected to recover if Yellen and the US Federal Reserve work towards quantitative easing (QE).
At the time of writing, Bitcoin is trading at around $54,800, up over 1% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
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