Bitcoin has recently successfully reclaimed the $80,000 mark, but bulls have not yet fully escaped danger.
Some traders may be too complacent and ignore the uptrend: Bitcoin has never experienced three downtrends during a bear market.
The May stock market is still in a downward trend, but the foundation for a bull market remains fragile.
Bitcoin, as the flagship cryptocurrency, experienced double-digit declines in January and February. However, Bitcoin managed a marginal 1.81% gain in March, followed by a stronger 12% increase in April.
Prepare for a May decline, the analyst warned, believing the current rebound is merely a temporary bear market trap, not the beginning of a sustained macroeconomic reversal.
Bitcoin target price is $82,000
Bitcoin experienced a strong pullback after reaching a multi-month high of $82,227 on May 6.
Over the next two days, selling pressure eventually exhausted, and the price hit its low on May 8, slightly below $79,250.
As of May 10, the asset price has rebounded to around $80,740. Currently, the price is consolidating within a narrow channel.
If bulls fail to break through and hold the highs over the coming weeks, the resistance above could easily trigger another downward move.
According to U.Today, Jeff Park, an advisor at investment firm Bitwise, recently predicted that if the price of leading cryptocurrencies reaches $82,000, it could surge, as $82,000 appears to be the current key resistance level.
Growing institutional demand
Currently, market momentum remains strong, with Bitcoin ETF inflows exceeding $623 million.
As noted by the prominent cryptocurrency exchange Bitfinex, institutional flows into Bitcoin are transitioning into structural flows.
Therefore, Bitcoin bulls may actually reverse the bear market trend.