Bitcoin experienced a significant surge of 7.54% in the past 24 hours, surpassing the $65,000 mark. This increase can be attributed to positive inflation data in the United States. Traders are now closely monitoring two key indicators that could potentially drive Bitcoin’s value up to $70,000.
One of these indicators is the Gann Fans model, which analyzes the geometric and cyclical movement of the crypto market. Blockchain Mane, a pseudonymous crypto trader, explained that Gann Fans provide valuable insights into market cycles and price action. They likened it to a time and price momentum indicator that helps visualize these patterns.
According to Blockchain Mane, the market cycle is currently at a pivot point, positioned at the center of the Gann square. If Bitcoin maintains an upward trajectory, a markup phase can be expected until the end of May. However, if this break is lost, a sideways downtrend continuation is likely until the end of May.
The timing of this pattern is particularly notable as it coincides with core inflation dropping to 3.6% – its lowest level since 2021. This could potentially support the case for interest rate cuts.
Blockchain Mane is now focused on Bitcoin flipping its previous resistance level of $63,000 to become a new support level. They believe that this would be a bullish indicator for the cryptocurrency. They also suggest that it would be preferable to see sideways price action at this point, allowing more narratives to develop. Otherwise, there is a risk that altcoins may struggle to gain momentum.
Bitcoin’s market cap dominance, which represents the ratio of Bitcoin’s market cap to the total market cap of all other cryptocurrencies, has increased by 2.23% to 55.99% in the past week.
Another pseudonymous crypto trader, Mikybull Crypto, points to an inverse head-and-shoulders pattern as a bullish indicator for Bitcoin. This pattern suggests that the downtrend is easing and buyers are gaining market dominance. If this pattern continues, Bitcoin’s price could reach $70,000, potentially surpassing its current all-time high of $74,580.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.