Bitcoin’s price has been stuck in a rut lately, but some analysts believe the worst is over. Crypto analyst Daan Crypto is pointing to a Bitcoin Rainbow Chart as a sign that things are about to change.
Breaking Above $60,000 is Key
Daan Crypto thinks Bitcoin needs to break through the $60,000 mark to really start moving upwards. He’s watching the Rainbow Chart closely, and right now, Bitcoin is hovering in the “dark green” zone. This means it’s struggling to break out of its current range.
A Dip Could Be a Buying Opportunity
If Bitcoin fails to break above $60,000, Daan Crypto thinks it could drop to the “blue” area on the Rainbow Chart, around $51,000. He sees this as a potential buying opportunity, as historically, the blue area has been a good time to accumulate Bitcoin.
Why Bitcoin is Stuck
Bitcoin hit a new all-time high in March, but since then, its price has been flat. This has led some to worry that the bull market is over and a bear market is on the horizon. However, Daan Crypto believes this is just a temporary pause.
He points out that Bitcoin hit its all-time high before the halving event in April, which has never happened before. This means Bitcoin is actually ahead of where it would normally be in previous cycles. He thinks it’s just taking a break to catch up and consolidate.
More Liquidity on the Way
Arthur Hayes, the co-founder of the BitMEX crypto exchange, also believes Bitcoin is poised for a rebound. He thinks more money will flow into Bitcoin soon, pushing its price higher.
Hayes is optimistic about the US economy, which he believes is headed for a “soft landing.” This could lead to the Federal Reserve implementing quantitative easing (QE), which would likely be good news for the crypto market.
The Bottom Line
Bitcoin is currently trading around $54,800. While it’s been stuck in a range for a while, some analysts believe it’s just a matter of time before it breaks out and starts climbing again. The Rainbow Chart, combined with the potential for more liquidity, suggests that a bullish reversal might be on the horizon.
