Crypto analyst Merlijn has revealed that Bitcoin has just re-entered the DCA zone, indicating it’s a good time to buy BTC. The leading crypto is already staging another rebound, rising to the psychological $70,000, which has so far proved to be a major resistance level.
Bitcoin Reenters DCA Zone As Price Eyes Another Rally
In an X post, Merlijn stated that Bitcoin has just entered the DCA zone on the rainbow chart and that BTC is now back in the DCA zone. He noted that a massive rally has followed every time this has happened. At the same time, this is when retail investors have panicked and sold. The analyst added that this chart has never been wrong.
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In another X post, Merlijn stated that Bitcoin has reached a critical level, especially as it continues to trade within a tight range between $60,000 and $70,000. His accompanying chart showed that BTC could rally above $120,000 if it holds this support level. However, there is the possibility of a larger decline if it fails to hold this current range.
The analyst also revealed that Bitcoin is mirroring the 2021 top exactly with the same sequence, lower highs, and the same structure. He noted that 2021 ended with one final flush before the recovery. Merlijn said the $60,000 level is the last line of defense, and a hold above it would mean buyers are taking control. However, a drop below this level would put liquidity clusters below as the next targets.
Bitcoin saw a violent recovery following the final flush below, and the analyst is confident that this time won’t be different. Crypto analysts like Benjamin Cowen have predicted that BTC could recover by the second half of this year as part of the 4-year cycle.
Peter Brandt Predicts A Breakout For BTC
Veteran trader Peter Brandt has predicted that Bitcoin could break out to the upside. In an X post, he said, alluding to BTC’s daily and weekly charts, that “the Big Banana is forming a Little Banana — and it indicates there is about to be a Banana Split.” His accompanying chart showed that the flagship crypto could rally to $82,500 by April.
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In the long term, Brandt predicted that Bitcoin could rally to $120,000 and possibly $280,000. His prediction comes just days after he admitted that BTC may be in the midst of a bullish reversal. The veteran trader said that he viewed Bitcoin’s rally to $74,000 back then as potentially a significant change in price behavior since the October top last year.
At the time of writing, the Bitcoin price is trading at around $69,900, up over 3% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Pngtree, chart from Tradingview.com