The Bitcoin market recently experienced a significant price dip as a public feud between US President Donald Trump and the world’s richest man, Elon Musk, negatively impacted US financial markets. During this period, the premier cryptocurrency dropped by an estimated 5%, trading below $101,000 after hitting $106,000.
Despite this short-term volatility, several key technical indicators now suggest a potentially bullish setup. This latest pullback seems to complete a series of signals that historically precede major price rallies.
In a post on X on June 6, market expert CrypFlow shared a bullish Bitcoin prediction amidst the ongoing price correction. Despite the sharp price decline over the past week, the BTC market has been in a steady correction since achieving a new all-time high of $111,970 on May 22.
CrypFlow notes that this price retracement, along with other technical indicators, suggests that Bitcoin may be set to repeat its price rally from Q4 2024. The first indicator observed is the golden cross, which occurs when the 50-day simple moving average (50SMA) crosses above the 200-day simple moving average (200SMA), expected in early June 2025. This is a common bullish indicator signaling a shift in market momentum and was last seen in November 2024.
Additionally, there has been a Bitcoin price breakout above a long-standing downward trendline that originated in December 2024. This breakout mirrors a similar movement in early November 2024 when BTC breached the descending resistance that began in March 2024.
The current price correction represents the final indicator as Bitcoin previously suffered a 10% price fall in November, declining from $74,500 to $68,500 before an explosive price rally. CrypFlow's analysis suggests that if Bitcoin is repeating its Q4 2024 price rally, it could produce a 62% price gain, translating into potential targets around $170,000. However, the analyst has set a more conservative initial price target of $130,000, representing a 25% gain from current market levels.
As of press time, Bitcoin trades at $104,850 after a 2.57% gain in the past day. Meanwhile, the asset’s daily trading volume has dropped by 19.59%. According to data from prediction site Coincodex, the general BTC market sentiment remains bullish despite a Fear & Greed Index of 45, indicating fear. The Coincodex analyst team supports this market positivity with a price projection of $134,074 in five days and $155,864 in three months.
