Bitcoin, 67-Day Bottoming Process Ends...Preparing for the Biggest Bull Market Since 2020

▲ Bitcoin (BTC)

Bitcoin (BTC) has concluded the tedious consolidation phase following the end of quantitative tightening and is now on its final test before entering the largest bull market since 2020.

Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, stated in a video uploaded to his YouTube channel on May 1 (local time) that "the post-quantitative tightening adjustment is almost over," assessing that Bitcoin is poised for a significant uptrend.

He claimed, "The process of normalizing the impact of the Federal Reserve's (Fed) record liquidity withdrawal on the market is currently underway," and "Bitcoin's price movement has completed its bottoming phase, showing similar patterns to past periods when quantitative tightening ended."

Compared to the 2019 instance where price adjustments continued for approximately 140 days after the end of quantitative tightening, this cycle is showing a relatively faster recovery. Gambardello explained, "A bottom was formed in about 67 days since quantitative tightening ended in early December, and it is currently in a structural formation phase for entering a full-fledged bull market." Institutional investors, known as smart money, quietly accumulated holdings while retail investors left the market in fear, preparing for the next upward cycle.

If Bitcoin breaks through the $80,000 resistance level and closes a weekly candle above the 200-day moving average of $84,000, the long-term downtrend will be completely over. Currently, Bitcoin is consolidating upward energy, fluctuating around the 20-day moving average near $75,000 as support. Downside, the Fibonacci support level between $64,000 and $67,000 holds firm, making a further sharp decline unlikely.

A temporary contraction in macroeconomic indicators such as the Purchasing Managers' Index is merely a phenomenon caused by unforeseen variables like Middle East tensions, and it does not undermine the long-term expansion trend. The economic policies of US President-elect Donald Trump and the potential addition of Kevin Warsh to the Federal Reserve are expected to create a favorable environment for the virtual asset market. Gambardello predicted that the market would experience a powerful rally exceeding most expectations once geopolitical risks are resolved.

Bitcoin is preparing for a new leap forward at the intersection of technical indicators and policy changes. The current period, with subdued retail investor sentiment, is highly likely to be the starting point of a true bull market driven by institutional capital. Gambardello emphasized that investors should not be swayed by short-term volatility but focus on fundamental changes in supply and demand, adding that this consolidation phase will be the last opportunity to create billionaires.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*