TL;DR

• Bitcoin faces resistance before a possible bullish continuation.
• One popular analyst highlighted the 200-day MA and the 50-day MA as critical reversal points.

Can Bulls Regain Control?

Bitcoin (BTC) became the talk of the town at the start of the year when its price hit a new all-time high of almost $110,000. This happened in mid-January, but since then, the asset has been on a downfall. Currently, BTC trades at around $86,500, representing an 6% decline on a monthly scale.

According to some analysts, though, the bull cycle might kick in at full speed again under some important conditions.

The X user Ali Martinez recently claimed that BTC faces the 200-day Moving Average (MA) at $86,200 and the 50-day MA at $88,300 as “key resistance ahead.” He assumed a breakout above these levels might “shift momentum back to the bulls.” Although bitcoin is currently above the first target, it still needs to close north of it.

Gert van Lagen also chipped in, telling his over 115,000 followers on X that BTC “is continuing its bull market after bouncing off the neckline” of a four-year-old Head and Shoulders (H&S) formation. He believes the price could surge to a new ATH of a whopping $300,000 in the following months, but a weekly close below $74,400 might invalidate the potential rally.

For their part, CRYPTOWZRD predicted that a “successful bullish breakout” of the $85K resistance area may be followed by a surge to as high as $91,500. On the other hand, a rejection could result in a crash to $78,200 and even lower. 

Other Projections

Another well-known industry participant who recently touched upon the matter is BitMEX’s co-founder, Arthur Hayes. He thinks the US Federal Reserve will eventually resume the quantitative easing (QE) monetary policy due to mounting political and economic pressure. In his view, this renewed liquidity injection will drive BTC’s price higher.

The policy usually occurs when interest rates are low and involves purchasing government bonds or other financial assets to stimulate economic activity. While the FED kept the benchmark unchanged following its previous FOMC meeting, there is a solid chance it could implement a cut in its June gathering.

Meanwhile, those willing to explore additional factors signaling that BTC may have a successful Q2 could take a look at our dedicated article here.