“BTC May Ceiling With $45,000 In May”
According to Vetle Lunde, an analyst at K33 Research, the leading cryptocurrency Bitcoin (BTC) is closely following its rise from the beginning of 4 years ago. According to the analyst, the BTC price may reach around $ 45 thousand in May. Bitcoin is up 80% this year. The rally comes after 12 months of slump, when prices fell 76 percent and bottomed out in November 2022.
According to the analyst, the decline and subsequent recovery are similar to the pattern seen in the 2018-19 bear market in terms of length and trajectory. Lunde used the following statements in the note he sent to customers last week.
“In both cycles, the bottoms lasted about 370 days. Peak-to-bottom return reached 60 percent at 510 days after both cycles. The 2018 bear market rally peaked 556 days after the 2017 peak, which was down 34 percent from the June 29, 2019 peak. If the pattern continues, it is unlikely that history will repeat itself in the same way, but BTC may peak with $ 45 thousand like May 20.“
While Bitcoin fell 84% in 2018, its price approached the bottom at $3,100 in December. The trend changed in the following months, and in early 2019 it was first at $3,700; At the end of June, it went up to $13,800.
A bull market usually begins at the height of pessimism. The market reaches a volatile level when investors who reduce risk in anticipation of a prolonged decline begin to feel that they are not sufficiently involved and join the uptrend. Lunde continued his note:
“The hated rally of 2019; BTC ended with a significant peak before continuing to trade with a 40-60 percent drop from 2017 ATH. The rally in early 2023 has all the hallmarks of a hated rally.“
Bitcoin’s rise so far this year has been widely referred to as a “hated bull market move” among crypto watchers on Twitter, while some key traders were also thought to be positioned for a sustained sell-off in the first quarter.
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