Given that Bitcoin (BTC) is struggling big time to reclaim the $8,000 level, many traders expect more downside pressure.
However, Benjamin Blunts appears to think that the current level could serve as a local bottom for Bitcoin before the leading cryptocurrency starts its next rally to $10,000.
Prepare for a boring month
Blunts thinks that the benchmark cryptocurrency has entered a new accumulation stage that will be accompanied by sideways price moves. After two months of this yo-yo market, the trader expects BTC to stage a convincing breakout in May, which will coincide with the halving, the most anticipated event of this year.
Last year, Bitcoin skyrocketed by more than 60 percent in May and extended these gains in June, reaching the 2019 high of $13,888. Then, the rally hit a pause button, and the crypto king endured a painful 50 percent correction in the fourth quarter after forming a series of lower highs.
Blunts' analysis falls in line with some other bullish price predictions. In particular, stock-to-flow model creator PlanB forecasted that BTC will stay above $10,000 after the upcoming supply reduction. Binance CEO Changpeng Zhao also doesn't expect the top cryptocurrency to stay in the four-digit realm for long.
Nevertheless, this halving is a big gamble for miners who have continued to ramp up their equipment. If things go south and they startup capitulating, this could lead to a big bear market.
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