Bitcoin Rallies for 4 Consecutive Weeks, Will it Break Through the $88,000 Sell Wall in May?

▲ Bitcoin (BTC) ©CoinReaders

Bitcoin (BTC), the leading virtual asset, which has continued its relentless upward trend for four consecutive weeks, is drawing market attention with a bold forecast from a renowned analyst that it could break through a massive sell wall and surge up to $88,000 in the upcoming May.

According to the cryptocurrency media outlet Finbold on April 27 (local time), virtual asset expert Michaël van de Poppe predicted, based on pure technical analysis, that Bitcoin would rally to a liquidity zone between $85,000 and $88,000 in May, followed by a correction or consolidation. He cited Bitcoin's stable hold of the $71,438 to $73,408 range, which acted as a strong resistance level in March, as a basis for the bullish market.

The analyst emphasized that for Bitcoin to reach this optimistic target price, buyers must convert the massive sell wall formed around $80,646 into a firm support level. However, if the upward momentum breaks near the current resistance level of $79,127, the bullish target for May could be immediately invalidated. Furthermore, with a potential double-top pattern forming over the past week and the Relative Strength Index (RSI) showing bearish divergence, the potential for a downward reversal still remains.

The media analyzed that the direction of Bitcoin's price in May would largely depend on leverage in the derivatives market and the performance of the spot market. Since April's price surge was primarily driven by leveraged investors, for an additional rally to continue next month, buying pressure in the spot market, including through Bitcoin spot exchange-traded funds, must outweigh net selling pressure. If spot demand slows down, a fragile, leverage-driven bull market could quickly lead to a sharp correction.

Changes in macroeconomic indicators and the regulatory environment are also identified as key variables that will shake the market in May. Monetary policy decisions by major central banks, including the US Federal Reserve, Bank of Japan, Bank of Canada, Bank of England, and European Central Bank, scheduled for this week, are expected to have a direct impact on market liquidity. Additionally, the committee voting schedule for the Clarity Act, a US cryptocurrency market structure bill, is considered a major point of interest that could maximize Bitcoin's price volatility.

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