Bitcoin Finally Bottomed Out...Last 'Buy' Signal Spotted Before Breaking $85,000

▲ Bitcoin (BTC)

Bitcoin (BTC) has entered a critical zone that could signal the end of its long-term downtrend, while the possibility of a major bull market, coupled with a shift in institutional regulations, is simultaneously gaining prominence.

According to the cryptocurrency-focused YouTube channel Paul Barron Network on April 27 (local time), host Paul Barron analyzed that Bitcoin settling above the 20-week moving average on a weekly basis indicates a signal of forming a bottom in the long-term downtrend cycle. However, he emphasized that further price expansion is needed to confirm an uptrend, as there have been instances of sharp declines after similar past rebounds. He added that a cautious approach is necessary until a bullish reversal is confirmed on a daily basis.

The first hurdle for an upward reversal is the resistance zone between $80,000 and $81,000. Subsequently, the 200-day moving average, located around $84,000 to $85,000, is identified as a key turning point. Barron explained, “Only by breaking through this zone and converting it into support can a full-fledged bull market entry be declared.”

Institutional variables are also raising market expectations. The U.S. cryptocurrency market structure bill (CLARITY) is reportedly likely to pass as early as June. Mike Novogratz, CEO of Galaxy Digital, projected that the bill could go through committee procedures in May and reach President Donald Trump's signing stage in June. Brian Armstrong, CEO of Coinbase, also emphasized the necessity of the bill's passage, citing bipartisan support.

Support zones for a bearish scenario were also presented. The primary support line is the $71,000 to $75,000 range, and if this range breaks, $64,000 to $67,000 based on Fibonacci retracement lines is highly likely to act as the final defense line.

The future direction of the market is expected to be determined in conjunction with macroeconomic variables. External factors such as the Purchasing Managers' Index (PMI) announcement, Federal Reserve officials' statements, and tensions in the Middle East could increase volatility. Bitcoin is currently undergoing its final consolidation phase to form a new trend at the intersection of technical shifts and institutional changes.

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