With the start of the last week of the second quarter, Bitcoin (BTC) is facing a significant price drop. On Monday, this sharp decline temporarily caused the flagship cryptocurrency to lose support above $60,000.
This drop has raised doubts among many investors about whether the bull market has ended. However, cryptocurrency analysts remain optimistic about BTC’s performance and believe the drag is part of a quarterly retest.
Is Bitcoin heading for a “chopped summer”?
On Tuesday, cryptocurrency analyst Jelle defended the bullish momentum of Bitcoin. In the midst of pessimism in some community forums, this cryptocurrency investor believes that the bull market for BTC is not over.
According to Jelle’s post, despite Bitcoin briefly falling below $60,000, it has maintained key support levels. Furthermore, the largest cryptocurrency by market cap shows a “still firmly optimistic” higher timeframe structure.
This structure consistently demonstrates BTC’s performance, creating higher highs (HH) and higher lows (HL) over the past year and a half. According to the charts, the price drop is still above the retracement on May 1st, which remains the deepest retracement of this cycle.
Jelly criticized those who spread “hatred” towards bullish investors, emphasizing that “Bitcoin has been on the rise for nearly 20 months.” He stated, “In a bull market, faith pays off.”
Additionally, he pointed out that the flagship cryptocurrency is showing bullish signals below historical all-time highs. For analysts, this consolidation may be similar to the consolidation below the $30,000 resistance level.
BTC consolidates below the $30,000 resistance level. Source: Crypto Jelle on X
If it does happen, Bitcoin will undergo a “chopped summer” below the key resistance of $74,000 before the breakout, according to Jelle. This breakthrough may cost BTC $100,000.
Quarterly retest: “Red Monday, Green Monday”?
Despite long-term predictions, Jelle has set a target of $63,500 for this week. In the Monday drop, the analyst said that BTC’s performance is similar to 2016-2017.
Furthermore, he pointed out that the key support level of $58,000 for Bitcoin played a role in this “quarterly pullback.” For Jelle, Bitcoin could “lock in higher lows on lower timeframes” by Tuesday.
Therefore, the analyst believes that by the end of this week, bulls can push the price of the flagship cryptocurrency to $63,500. Jelle also believes that Bitcoin may exceed its weekly open time, making it a “red Monday, green Monday.”
Altcoin Sherpa also suggests that BTC can reach the weekly open. According to the analyst, the current range is still a “bounce area,” which may bring the price back to $64,000. He expects this performance to alleviate the pressure on altcoins, although he does not believe it is the “bottom.”
Sherpa believes there will be more volatility before the local bottom is reached: “4-hour moving averages are bearish; when we see prices interacting with them around 64kish, we expect prices to fall.” The analyst believes that BTC’s local bottom will arrive in the next few days, possibly testing the retracement level of May 1st.
At the time of writing, Bitcoin’s trading price is $61,700, recovering 4.5% from Monday’s pullback.
Performance of BTC on the weekly chart. Source: BTCUSDT on TradingView