Summer Correction Seems To Be Ending As Bitcoin Starts to Move Upward, Analysts Weigh In
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Bitcoin (BTC) has witnessed a remarkable surge, marking its most significant single-day gain in nearly two months, shortly after the release of US Consumer Price Index (CPI) data on Wednesday.
This surge, pushing BTC past $66,252, comes amidst expectations of a potential easing of monetary policy by the Federal Reserve (Fed) and a positive outlook for risk assets, including cryptocurrencies.
End of Summer Correction
The latest data from the U.S. Consumer Price Index (CPI) reveals a 3.4% increase over the 12 months ending in April, slightly lower than March’s 3.5% rise. This indicates a slowdown in price growth, aligning with expectations for a gradual easing of inflationary pressures in the coming months.
The impact of the CPI news has rippled through various asset classes, including cryptocurrencies like Bitcoin (BTC). Following the release of the CPI data, Bitcoin experienced a significant breakout above the $66,000 resistance level.
Meanwhile, this breakout is viewed as a crucial moment, potentially signaling the end of the summer correction and opening the gates for further rallies toward new all-time highs.
Analysts Weigh In on Bitcoin Breakout
Amidst the recent surge in Bitcoin’s price, renowned crypto analysts offer insights into the cryptocurrency’s future trajectory. In a recent tweet post renowned crypto analyst Rekt Capital hinted that the Bitcoin downtrend might be ending after the latest breakout. He observed signs of decreased selling pressure, with Bitcoin hovering around the $60,000 support level.
Further highlighting the significance of maintaining support at $60,000, Rekt Capital suggested that Bitcoin’s surge to $66,000 could mark the start of a push toward new record highs.
Similarly, Peter Brandt, another crypto expert, is optimistic about Bitcoin’s upward trajectory. He predicts that Bitcoin is headed for new record levels, but stresses the need for a strong breakout above $67,000 to confirm this.
In contrast, prominent crypto analyst Michael van de Poppe highlighted Bitcoin’s recent upward breakout as a sign of imminent stability and potential growth. Van de Poppe predicts that this period of calm in the Bitcoin market will likely coincide with accelerated growth in altcoins.
As Bitcoin’s price continues to climb, the insights of these analysts offer valuable perspectives for investors navigating the crypto market.