Bitcoin crosses $66K as traders eye 2 key indicators for $70K target

Bitcoin crosses K as traders eye 2 key indicators for K target

Bitcoin (BTC) jumped 7.54% in the past 24 hours and pushed past $65,000 amid positive United States inflation data with traders now keeping an eye on two key indicators for a potential rise to $70,000.

Pseudonymous crypto trader Blockchain Mane told Cointelegraph they are closely observing the Gann Fans model — a key indicator which analyzes the geometric and cyclical movement of the crypto market — to see if Bitcoin can “remain bullish.”

“Gann Fans are interesting, almost like a time and price momentum indicator,” they said, explaining it helps to better visualize the market cycles and price action.

The Gann square consists of a 5×5 grid, column 1 is the start of the cycle. Source: Blockchain Mane

“In terms of Gan timing, we are at a pivot in the market cycle, directly in the center of the current square. if we pivot to the upside, then we can see a markup phase until the end of May,” they explained.

However, they warned, “if we lose this break then we will probably see the sideways, downtrend continuation until the end of May.”

The pattern has stood out to the Blockchain Mane on the same day that core inflation fell to its lowest levels since 2021, at just 3.6% — potentially strengthening the case for interest rate cuts.

Blockchain Mane is now looking for Bitcoin to flip its “previous resistance” price level of $63,000 to become its new support level, claiming this will be a “bullish indicator.”

Bitcoin is currently trading at $66,085. Source: CoinMarketCap

They would rather see “sideway price action” here while more narratives build up, otherwise, they claim it may hinder the potential for altcoins to gain.

“If BTC pumps here and gets rejected, Alts will probably get hammered as Bitcoin’s dominance continues to rise, Alts are becoming more and more glued to BTC price action.”

Bitcoin’s dominance — the ratio of Bitcoin’s market cap compared to the total market cap of all other cryptocurrencies — has risen 2.23% to 55.99% over the past seven days, according to TradingView data.

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Meanwhile, the inverse head-and-shoulders pattern — a bullish indicator signaling the downtrend is easing and buyers are gaining market dominance — is one of the indicators showing that Bitcoin is due “for a bounce,” pseudonymous crypto trader Milkybull Crypto told his X followers on May 15.

Source: Milkybull Crypto

The inverse head-and-shoulders pattern forms as a reversal setup and includes an “inverted” head and shoulders, with the left and right shoulders upside down below the neckline. 

If the pattern continues, Bitcoin’s price could reach its next key price level of $70,000 before potentially breaking its current all-time high price of $74,580, according to Milkybull Crypto.

This represents an approximate 12% jump from its current price of $66,085, according to CoinMarketCap data.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.