Bitcoin, Is the $80,000 Breakout a Trap?..."Possibility of Retreat to $73,000 Remains"

▲ Bitcoin (BTC) decline/AI generated image

Bitcoin (BTC) has temporarily broken through the $80,000 resistance level, raising expectations for a bullish turn across the virtual asset market.

Dan Gambardello, host of the crypto-focused channel Crypto Capital Venture, stated in a video released on May 4 (local time) that Bitcoin's breakthrough of $80,000 is a starting point for a macro trend reversal. However, he emphasized the need to be cautious of a potential false breakout in the short term. The key variable identified is whether Bitcoin can settle above the 200-day moving average in the $83,000 to $84,000 range. If it fails to hold this range, an analysis suggests a potential pullback to the $73,000-$74,000 range.

Ethereum (ETH) is following Bitcoin's trend, forming an upward structure and attempting to break above $3,400. With a rising triangle pattern established, an unusual structural change was observed between the 20-week and 200-week moving averages on a weekly basis. There are views interpreting the current level as a strong bottom, given past instances where Ethereum surged by over 100% after a similar signal.

SUI and Cardano (ADA) are also preparing for a directional change after a prolonged period of price compression. SUI is attempting to recover key moving averages near $1.19, while for Cardano, breaking through the $0.29 resistance is identified as a turning point for a future trend reversal. The market assesses that altcoins in general are emerging from a long-term stagnation, increasing the likelihood of a shift in dominance.

Macroeconomic indicators also support the upward trend. The Purchasing Managers' Index (PMI) exceeding 50 and entering an expansion phase has shown a high correlation with past cryptocurrency bull markets. Coupled with expectations of an end to quantitative tightening, signs of liquidity expansion are being detected, creating a positive environment across the market, centered around Bitcoin.

Currently, the market is in a condition ripe for an uptrend, with both technical indicators and the macroeconomic environment improving simultaneously. However, until the breakthrough of the $84,000 level is confirmed, a response considering the possibility of increased volatility is required.

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