Bitcoin Drops 7% After All-Time High, Analyst Predicts 26% Gain

Bitcoin, the premier cryptocurrency, has recently experienced a corrective phase after reaching a new all-time high (ATH) of nearly $112,000. This downturn resulted in a loss of over 7% of its value. Despite this market correction, a prominent crypto analyst with the username KillaXBT has predicted that Bitcoin will regain its bullish momentum and re-enter price discovery territory.

In a post on May 30, KillaXBT advised investors to open a long position at the $104,000 price zone. The analyst, who has a track record of accurate predictions when Bitcoin was trading at $76,000 and $94,000, anticipates that the cryptocurrency could reach a price target of $120,000 by mid-June. KillaXBT views the recent decline as part of the existing bullish price map, suggesting that investors should not turn bearish.

The analyst described the current uptrend as a "sideliners’ rally," noting that despite a significant increase in M2 Money Supply, there is low participation from investors and traders. This is indicated by a negative premium index and low funding rates. The analyst suggests that the bullish momentum is driven by long-term conviction from institutional investors or market whales, strengthening the potential for a sustainable price rally.

KillaXBT's analysis, based on a trading chart, suggests that Bitcoin’s price correction has created a monthly open trap just below the $104,000 mark. Investors are advised to open a long position with a price target of $120,000. However, the analyst also acknowledges the potential for a market upset, noting that a decisive price close below $97,000 would nullify the bullish set-up. In such a scenario, KillaXBT proposes a recovery trade by opening another long position right below $97,000, targeting a rebound toward $109,000 to recoup losses and maintain upside exposure.

At the time of writing, Bitcoin was trading at $104,519, reflecting a 0.70% price increase in the past day. Despite recent price drops, investors remain highly bullish. According to the analyst's forecast, Bitcoin could reach $132,409 in the next five days, suggesting a potential 26% gain on the current market prices.