Bitcoin experienced a significant surge of 7.54% in the last 24 hours, surpassing the $65,000 mark. This rise was influenced by positive inflation data from the United States, and traders are now closely monitoring two key indicators that could potentially push Bitcoin’s value to $70,000.
One of these indicators is the Gann Fans model, which analyzes the geometric and cyclical movement of the crypto market. According to Blockchain Mane, a pseudonymous crypto trader, Gann Fans provide valuable insights into market cycles and price action. They likened it to a time and price momentum indicator that helps visualize these trends.
The Gann square, a 5×5 grid, is particularly important in this analysis. The first column represents the start of the cycle. Currently, the market is at a pivot point in the cycle, positioned at the center of the square. If the pivot is upwards, there is a possibility of a markup phase until the end of May. However, if the break is lost, the market may continue to move sideways in a downtrend.
The pattern observed by Blockchain Mane coincided with a decrease in core inflation to 3.6%, the lowest level since 2021. This could potentially strengthen the argument for interest rate cuts. Additionally, Blockchain Mane is hopeful that Bitcoin will establish a new support level at its previous resistance price of $63,000, which would indicate a bullish trend.
While waiting for more narratives to develop, Blockchain Mane prefers to see sideways price action. They believe that too much focus on Bitcoin’s price movement may hinder the growth potential of altcoins. Bitcoin’s market cap dominance, which measures its market cap compared to that of other cryptocurrencies, has increased by 2.23% to 55.99% in the last seven days.
Another pseudonymous trader, Mikybull Crypto, pointed out the inverse head-and-shoulders pattern as a bullish indicator. This pattern suggests that the downtrend is easing and buyers are gaining dominance in the market. According to Mikybull Crypto, Bitcoin is due for a bounce, and if the pattern continues, its price could reach $70,000, surpassing its current all-time high of $74,580.
This potential increase represents a nearly 12% jump from its current value of $66,085, as reported by CoinMarketCap. It is important to note that this article does not provide investment advice or recommendations. Traders are advised to conduct their own research and analysis before making any investment decisions.