- Experts like Tom Lee believe Bitcoin will climb higher
- Statistics indicated that the market has not yet bottomed out given continued pressure on the sell side
The past few weeks have been very crucial for Bitcoin [BTC], with the price also falling below the critical $60,000 level. However, after significant corrections, the coin recovered on the charts and was trading at $63,167 at the time of writing.
BTC’s 6% rise over a period of just 24 hours signals a possible reversal in the cryptocurrency’s market trajectory. Needless to say, this has revived optimism among investors and observers alike.
Is there a buying opportunity amid the volatility?
However, as volatile as Bitcoin may be right now, many executives believe this is also an opportunity. Some see this primarily as a good buying opportunity. Chief among them is Tom Leewhile the Fundstrat co-founder claimed during an interview:
“I think we got a bit fooled by the April turmoil and I think that’s why it’s a buying opportunity now for both Bitcoin and stocks.”
He added,
“It doesn’t mean it’s going to turn today, but I don’t think this is a top.”
According to the director, the most recent decline was a healthy correction, possibly caused by profit-taking.
That’s not all though, with another analyst – @el_crypto_prof – going to X (formerly Twitter) to draw a parallel with a historical market trend.
“History does not repeat itself, but often rhymes. $BTC has reached a trendline that has been playing an important role since early 2023.
Shedding light on Bitcoin’s future prospects, he added:
‘The thing is being sent higher. It’s only a matter of time, imo.”
Source: El_crypto_prof/Twitter
Crypto analyst TechDev also joined in, with the analyst stating:
“The impulsive structure of the last year and a half says 90-100,000 is next. $BTC”
Source: TechDev/Twitter
Simply put, the general consensus among most analysts is that these market conditions do not represent the end of the bullish cycle. Rather, they are only a temporary setback.
What do the numbers indicate?
AMBCrypto’s analysis of BTC’s Age Consumed data echoed previous findings. Since April 3, there has been minimal activity, indicating that there is no price floor.
Furthermore, Bitcoin’s Network Realized Profit/Loss (NPL) data, which measures the difference between the last moved price and the current market price, also showed no signs of a price bottom.
Source: Santiment
Ergo, both statistics contradict the sentiments shared by Lee and others, suggesting the market may not have bottomed out yet.
Following the same, an analysis of Glass junction highlighted a surge in Bitcoin outflows in April – a sign of selling pressure in the market.
Source: Glassnode