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Bitcoin ($BTC) faced a sharp price drop as the last week of Q2 began. The dramatic decline saw the flagship cryptocurrency momentarily lose its support above the $60,000 level on Monday.
The drop left many investors wondering whether the bullish rally is over. However, crypto analysts remain optimistic about $BTC’s performance and consider the drag down to be part of the quarterly retest.
Is Bitcoin Headed For A ‘Chop Summer’?
On Tuesday, crypto analyst Jelle made a case for Bitcoin’s bullish momentum. Amid the bearish sentiment from some community sectors, the crypto investor believes $BTC’s bull run isn’t over.
Per Jelle’s posts, Bitcoin has been holding key support levels despite its brief fall under $60,000. Additionally, the largest cryptocurrency by market capitalization displays a “still firmly bullish” higher-timeframe structure.
This structure exhibits $BTC’s performance consistently, making higher highs (HH) and higher lows (HL) for the last year and a half. Per the chart, the price drop remains a higher low than the May 1 retrace, which remains the deepest this cycle.
Jelly criticized those who send “hate” to bullish investors, highlighting that “Bitcoin has consistently moved higher for nearly 20 months.” He suggested that “In a bull market, conviction pays.”
Moreover, he pointed out that the flagship cryptocurrency exhibits a bullish flag below all-time high levels. To the analyst, this consolidation could play out similarly to the consolidation below the $30,000 resistance range.
If it were to happen, Bitcoin would see a “chop summer” below the new key resistance, the $74,000 ATH price, before breaking out. According to Jelle, the breakout could cost $BTC $100,000.
Quarterly Retest: ‘Red Monday, Green Week’?
Despite the long-term forecast, Jelle set a $63,500 target for this week. During Monday’s drop, the analyst stated that $BTC’s performance was playing out like it was in 2016-2017.
Furthermore, pointed out that Bitcoin’s key support level of $58,000 is “doing its job” during this “quarterly retrace.” To Jelle, $BTC can “lock in a lower-timeframe higher low” this Tuesday.
As a result, the analyst considers that bulls can run the flagship cryptocurrency to $63,500 by the end of the week. Jelle also believes Bitcoin could surpass its weekly open, making it a “Red Monday, Green Week.”
Altcoin Sherpa also suggested that $BTC could reach the weekly open. Per the analyst, the current range remains a “bounce region,” which could return the price to $64,000. He expects this performance to relieve altcoins, although he doesn’t consider it “THE bottom.”
Sherpa believes there will be more volatility before the local bottom: “4h EMAs all bearish; expecting price to pull back when we see it interact with them at 64kish.” To the analyst, $BTC’s local bottom will come in the next few days and could test the May 1 retrace levels.
At the time of writing, Bitcoin is trading at $61,700, representing a 4.5% recovery from Monday’s pullback.