Bitcoin (BTC) has jumped 7.54% over the past 24 hours and surpassed $65,000 amid positive inflation data in the US, with traders now monitoring two key indicators for a potential rise to $70,000.
A cryptocurrency trader with the pseudonym Blockchain Mane told Cointelegraph that they are closely monitoring the Gann Fans model — a leading indicator that analyzes the geometric and cyclical movement of the cryptocurrency market — to see if Bitcoin can “stay bullish.”
“Gann fans are interesting, almost like a time and price momentum indicator,” they said, explaining that it helps to better visualize market cycles and price action.
“In terms of Gann time, we are at a pivotal point in the market cycle, right in the middle of the current arena. They explained that if we focus on the upside, we could see a consolidation phase until the end of May.
However, they warned that “if we miss this break, we will likely see a continuation of the sideways downtrend until the end of May.”
This pattern came to light for Blockchain Mane on the same day that core inflation fell to its lowest levels since 2021, at just 3.6% – potentially strengthening the case for interest rate cuts.
The Blockchain Mane is now looking for Bitcoin to flip the $63,000 “former resistance” price level to become the new support level, claiming that this would be a “bullish indicator.”
They would prefer to see “sideways price action” here as more narratives accumulate, otherwise they claim it could hinder the potential for altcoins to gain.
“If you pump Bitcoin here and it gets rejected, altcoins will likely take a hit as Bitcoin dominance continues to rise, and altcoins become more and more attached to Bitcoin’s price action.”
Bitcoin dominance — the ratio of Bitcoin’s market cap compared to the total market cap of all other cryptocurrencies — rose 2.23% to 55.99% over the past seven days, according to TradingView data.
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Meanwhile, the inverse head and shoulders pattern — a bullish indicator that indicates a downtrend is fading and buyers are gaining dominance in the market — is one indicator that shows Bitcoin is set to “bounce,” pseudonymous cryptocurrency trader Milkybull Crypto said. Tell Followers X on May 15.
The inverse head and shoulders pattern is formed as a reversal setup and involves an “inverted” head and shoulders, with the left and right shoulders turned upside down below the neckline.
If this pattern continues, Bitcoin price could reach the next major price level of $70,000 before breaking its current all-time high price of $74,580, according to Milkybull Crypto.
This represents an approximate jump of 12% from its current price of $66,085, according to CoinMarketCap data.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
