Bitcoin short term – double top descent or pause before hitting a new record?

Bitcoin has had a very eventful first five months of 2024. After a Bitcoin ETF was approved in early January, we first saw a sell-the-news move down, and then we quickly moved higher in February and March.

In mid-March we hit a new record ($74,000), after which April turned out to be fairly directionless. The ‘halving’ did not go as many had hoped.

The first weeks of May we traveled back down to find support around $58,000.

Then higher again and at the beginning of this week the news that an Ether ETF was coming very soon made prices skyrocket. Once again Bitcoin traded above $70,000.

Now that the Ether ETF is officially accepted, some commentators fear a new sell the news move. At the time of writing, Bitcoin is being traded for a price of $68,900.

Short term

Considering the chart of the first five months, there are currently two possibilities according to many analysts. Either we’re seeing a double top on the year to date chart (twice $70,000 in the last three months). If that is not broken, then we would normally see a fairly long move down (Toncoin also did this in the last few weeks after declining twice to break through $7) in the next few weeks.

Should we be worried about a possible #Bitcoin double top? pic.twitter.com/9uGakR4WQD

— Mister Crypto (@misterrcrypto) May 24, 2024

Either this is a short pause and next week we will see figures about the influx of ‘boomer investors’ who, after the Bitcoin ETFs, now also want to invest in the Ether ETFs. In that case, I predict that the $80,000 price point will be taken quickly.

Of course, we also have to pay attention to geopolitical conditions and economic (as well as election) news from the US. As more and more institutional money flows into crypto, geopolitics will have an increasing influence on the Bitcoin and Ether price in the future.

Trade safely everyone