(Kitco News) – Bitcoin bulls were stymied once again in early trading on Thursday, as King Crypto slid below the $65k level after an overnight climb, but analysts are seeing signs that the bottom could be in and BTC may be preparing for another breakout.
Data provided by TradingView shows that after opening the session just below $65,000 on Wednesday evening, BTC followed a now-familiar pattern, with a slow climb through the overnight punctuated by a spike just short of $66k around 3:15 am EDT and another to its session high of $66,455.50 at 7:30 am.
But the bulls once again ran out of steam, and the bears took over to put them out to pasture as they dropped Bitcoin to a daily low of $64,656.72 just after 10:30 am EDT.
At the time of writing, Bitcoin has recovered slightly to trade at $64,917.52, essentially flat on the 24-hour chart.
Cubic Analytics founder Caleb Franzen said that despite their frequent exhaustion, the bulls are doing a good job of defending key support, and he’s waiting for a break above the $66,000 level.
Quick dip below $65.5k, but seems like bulls are defending on the AVWAP from the June 18th lows.
This is where I'm watching to see if we can get a snap-back rally back above $66k (one-hour candles). pic.twitter.com/ve6JM09RNv— Caleb Franzen (@CalebFranzen) June 20, 2024
BecauseBitcoin CEO and founder Max said BTC and altcoins are continuing to do what they have done through every previous cycle.
“The top chart is $BTC, the bottom chart is $OTHERS.D,” he said in an X post this morning. “Think of $OTHERS.D as a gauge for how altcoins are performing. If it's moving up, alts are a better hold than $BTC. If it's moving down, $BTC is a better hold than alts.”
“As you can see inside of our red shaded areas - as $BTC is charging towards its previous cycle ATH, we typically see alts underperforming dramatically,” he noted. “In each of the previous two cycles, $OTHERS.D has dropped AGGRESSIVELY during this phase of the cycle; just like what's happening right now. Also notice the light blue dots... same market structure each time.”
“HTF market structure still looks solid here,” Max said. “I think what you're seeing right now is a tremendous discount before alt-season. Take it slow, but this type of PA & fear for altcoins is familiar. People will tell you that it's different, but here is the data. It is not currently different. I remain extremely long until presented with new evidence.”
And analyst Michaël van de Poppe believes BTC is bottoming in its current range, and expects to see a move higher before too long.
“#Bitcoin has likely bottomed in this area between $63-65K and finding itself in upward momentum,” he wrote in an X post. “As a result, #altcoins start to show more strength, as the Bitcoin dominance is going down.”
“The reversal is on the horizon,” he said.
