Analyst Thinks Bears May Be Caught Off Guard

Is this the start of a massive rally or just a temporary resurgence that would be followed by a brutal correction?

The primary cryptocurrency has experienced a solid rebound over the past week, reaching a two-month peak before it retraced slightly.

Some analysts believe the rally might be just getting started and that the price is poised for more substantial upside in the short term, while others warn that bears still dominate the market and a pullback could be coming next.

The Bulls to Regain Control?

Several hours ago, BTC soared to just over $76,000, whereas currently it trades at roughly $74,400 (per CoinGecko’s data). This represents a solid 9% increase on a weekly scale and a 15% rise from the local bottom of $65,000 observed towards the end of March.

According to Ali Martinez, the asset’s upward move is “just getting started.” He argued that BTC has finally broken free of the descending trendline it has been caught in for months.

“This is a structural shift that signals the coiling phase is over,” he claimed.

Martinez thinks the bullish impulse isn’t happening in a vacuum, noting that Bitcoin miners have paused their forced selling after cashing out $330 million worth of the asset in the last few weeks.

He also spotted a spike in demand from US-based institutions, saying that the Coinbase Premium has flipped positive, signaling that “regulated capital is aggressively positioning for the next leg higher.”

X user Crypto Fergani also made an optimistic forecast, claiming that BTC has bottomed.

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More Pain Ahead?

It is important to note that those predicting a future price plunge are just as vocal. X user Doctor Profit expects “a large trap for the bulls,” adding that the only question is how high BTC could rise before retreating by double digits.

For their part, Lofty suggested that the asset is about to repeat the 2022 bear market pattern, and if that plays out, it may collapse to as low as $38,000 in the coming weeks.

BTC’s Relative Strength Index (RSI) supports the bearish scenario. The technical analysis tool measures the speed and magnitude of recent price changes to give traders an idea about potential reversal points. Ratios above 70 signal that the price has increased too much in a short period of time and could be on the verge of a correction. On the other hand, readings under 30 are interpreted as bullish territory. As of this writing, the RSI stands at around 70.