Bitcoin Recovers 30% After April Plunge, Trades Above $100,000

Bitcoin has shown signs of stability after experiencing significant volatility earlier this year. The cryptocurrency plummeted from a high of $109,000 in January to a low of $74,600 by mid-April, resulting in a loss of over $34,000 in just a few months. However, since then, Bitcoin has made a strong recovery, gaining over 30% and recently reaching $105,700. It has been trading within a narrow range between $101,000 and $104,000 over the past week.

Traders have begun to notice a pattern in Bitcoin's price movements. According to analyst Trader Tardigrade, Bitcoin has been rising in increments of $10,000, followed by short periods of sideways action. This pattern includes moves from $75,000 to $85,000, then to $95,000, and most recently to $105,000. Each jump is followed by seven to 10 days of consolidation, providing traders with opportunities to take profits or set new entry points. These pauses can also act as support zones, where buyers may step in again. If this behavior continues, the next target could be $115,000, which is approximately an 11% increase from its current price.

Trading above $100,000 is a significant milestone for Bitcoin, as it provides psychological support and strengthens the bullish sentiment. The more time Bitcoin spends above this level, the more confident buyers feel about entering the market. Last week's modest gain of 0.50% followed a strong 11% surge earlier in May, indicating a steady and controlled growth pattern. This slow and steady growth is seen as a healthy sign by some market watchers, as it suggests that Bitcoin is building a solid base for future gains.

Looking beyond the short-term movements, some analysts are predicting much higher prices for Bitcoin. CryptoCon, who follows long-term cycle models, suggests that Bitcoin may be in the middle of a buildup phase. He references the Golden Ratio Multiplier, a model that uses Fibonacci levels and long-term averages. According to his analysis, a major cycle level was already hit in March 2024, but this was not the final top. CryptoCon's forecast puts the next ceiling near $160,000, which he calls "Level 5" in the cycle. This would represent a significant increase of over 50% from the current price. He compares the current market conditions to the period between 2015 and 2017, when a long stretch of slow growth was followed by a rapid rally.