Bitcoinattracts the attention of investors by making a fast start to 2024. So, has bull season really started? Here are the important factors you should consider when searching for the answer to this question and the analysis of these factors.
Bitcoin Technical Analysis and Critical Levels
Bitcoin (BTC) showed a significant increase in May 2024, reaching $69,538. This increase attracted the attention of investors and raised the question of whether the bull season has started. Currently trading around $69,200, BTC remains well above the 200-day moving average, defending its optimistic outlook.
Macroeconomic Factors and Interest Rate Decisions
The decision of the American Federal Reserve (Fed) not to change interest rates may increase the interest in risky assets in financial markets. Possible interest rate cuts, especially expected in the summer months, may increase the demand for risky assets such as Bitcoin and create upward pressure on prices.
Halving Effect and Historical Data
The next Bitcoin halving will occur in April 2024. Historically, these events have caused significant increases in Bitcoin prices. Halving events reduce the supply of Bitcoin in the market, creating upward pressure on the price. For example, the price of Bitcoin increased by 19% in the 12 months before the halving in 2020.
Analyst Opinions and Market Expectations
Cryptocurrency analysts state that Bitcoin’s current price movements may herald a significant increase before the halving event in 2024. It is observed that investors have started to accumulate Bitcoin, taking into account historical halving patterns. In this process, Bitcoin must overcome resistance and support points at critical levels to maintain its long-term uptrend.
While a significant portion of the technical indicators dated May 25, 2024 indicate buying, 10 of them are neutral and one indicates a sell position.
According to Tradingview analysis, a significant portion of oscillators show neutral
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Moving averages in Bitcoin have a more optimistic outlook and point to bull.
Pivot levels are calculated as seen below.
You can click here to access detailed technical analysis. Although these technical analyzes show many details, they cannot be interpreted as a final result. Therefore, this is not an investment advice.
Conclusion and Recommendations
There are some signs that the bull season has begun in Bitcoin, but further confirmation is needed to say for sure that we have entered a bull market. Although technical indicators and macroeconomic factors are moving in a positive direction, it is of great importance for Bitcoin to overcome critical resistance levels and remain at these levels permanently. Investors are recommended to act carefully and consciously in this process and to follow market trends closely.
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