Popular market analyst Michaël van de Poppe has said that Bitcoin has already hit its cycle bottom. The leading cryptocurrency is now in a steady uptrend that started in early April. During this period, Bitcoin’s price has risen from around $67,500 to a recent high of about $80,000, resulting in a net gain of roughly 20%.
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50-Week MA Indicator Marks a Key Test for Bitcoin Bulls
Supporting his optimistic view, van de Poppe has pointed out two important price levels that lie ahead in this expected market recovery, backed by a historical pattern that repeats across market cycles. Using data from 2017 to 2024, the experienced analyst explains that the first rally in any bull cycle often faces major resistance at the last significant support level and/or the 50-Week Moving Average (MA).
Based on this historical data, the immediate resistance for Bitcoin is between $86,000 and $88,000. This price zone was a key support area from November to January, before the heavy market sell-off at the end of January. However, the more important resistance level is higher.
As the name suggests, the 50-Week Moving Average (MA) is a long-term technical indicator that tracks the average closing price of an asset over the past 50 weeks to identify the broader market trend. It is often used to spot major resistance or support levels and to confirm bullish or bearish market momentum.
Van de Poppe’s Bitcoin analysis shows that the 50-Week MA has consistently acted as a major turning point in Bitcoin bull markets when it is below the 200-week moving average, which serves as a critical long-term support level. As seen in the previous cycle, this crossover turns the 50-week MA into a strong support level, paving the way for an extended price rally.
Related Reading: Analyst Predicts Biggest Bitcoin Bull Trap Of The Cycle, Calls Out 50% Crash To $42,000
Altcoin Rally, Market Pullback – Bull Run Has Multiple Phases
According to van de Poppe, there is a strong chance that Bitcoin will consolidate around these resistance zones for a few weeks. During this time, the analyst predicts that altcoins could attract capital inflows and see a significant rally, offering an early chance to recover losses from the bear market or build on gains for new investors.
However, van de Poppe also warns that Bitcoin could retest the $70,000-$75,000 range before continuing its bull rally. At press time, Bitcoin is trading at $80,900, up 1.02% over the past day. Meanwhile, daily trading volume has dropped 44.29% to $19.29 billion.
Featured image from Flickr, chart from TradingView
Frequently Asked Questions
Here is a list of FAQs about the question Is the Bitcoin bottom in based on the idea of key resistance levels to watch
BeginnerLevel Questions
1 What does Bitcoin bottom mean
It means the lowest price Bitcoin is likely to reach before it starts going up again Finding the bottom is a way of saying This is the best time to buy before prices rise
2 How can an analyst tell if the bottom is in
Analysts look at past price patterns and key price levels If Bitcoin holds above a certain price and then breaks through a major resistance level it can signal that the downtrend is over and the bottom is in
3 What is a resistance level in simple terms
Think of it like a ceiling Its a price where many people who bought Bitcoin earlier are waiting to sell so the price struggles to go higher If Bitcoin breaks through that ceiling it often means the price can keep climbing
4 Why should I care about two specific resistance levels
These levels act like checkpoints If Bitcoin can break through the first resistance its a good sign If it breaks through the second its a much stronger signal that the bottom is truly in and a new uptrend has started
5 Is it guaranteed that the bottom is in if Bitcoin breaks these levels
No its not guaranteed Markets can be unpredictable Breaking resistance levels is a strong signal but its not a 100 sure thing It just means the odds of the bottom being in have increased significantly
Advanced AnalystLevel Questions
6 What specific resistance levels is the analyst referring to
While the exact numbers change analysts often point to the 200week moving average or previous alltime high support levels A common example is watching for Bitcoin to break above the 30000 to 32000 range and then the 40000 to 45000 zone
7 What happens if Bitcoin hits a resistance level and fails to break through
Thats called a rejection It means the selling pressure is still too strong If Bitcoin fails at the first resistance the bottom may not be in yet and the price could drop to find a new