Bitcoin saw a sharp dip this week as a public spat between U.S. President Donald Trump and tech billionaire Elon Musk triggered broader market volatility. The cryptocurrency tumbled nearly 5% — from $106,000 to below $101,000 — amid the fallout on Thursday. However, analysts suggest this downturn may be the final phase of a classic bullish setup, potentially setting Bitcoin on course for a major price rally.
Short-Term Dip, Long-Term Opportunity?
Despite the recent price correction, technical indicators now point toward a positive outlook for Bitcoin. A widely followed market analyst, known as CrypFlow on X, stated on June 6 that Bitcoin’s chart is showing signs similar to those observed in Q4 2024 — just before the last major surge in price.
CrypFlow highlighted three major indicators:
- Golden Cross Formation: The 50-day Simple Moving Average (SMA) recently crossed above the 200-day SMA — a pattern known as the golden cross — which historically signals a shift to bullish momentum. This was last seen in November 2024, shortly before BTC’s price surge.
- Trendline Breakout: Bitcoin has broken above a long-standing downward resistance trendline formed since December 2024. A similar breakout occurred in November 2024, which led to a major rally.
- Healthy Price Correction: The recent 5% drop follows a pattern seen in past cycles. For instance, in November 2024, BTC dipped from $74,500 to $68,500 before catapulting upward.
Forecast: $130K First Target, $170K Long-Term Potential
CrypFlow believes that, if history repeats, Bitcoin could surge by as much as 62% from current levels — potentially reaching $170,000. However, the analyst has set a more conservative near-term target of $130,000, representing a 25% increase from the current market price.
Current Market Snapshot
- Price: $104,850
- 24h Gain: +2.57%
- Daily Trading Volume: Down 19.59%
- Market Sentiment: Bullish
- Fear & Greed Index: 45 (Fear)
Despite market fear, data from Coincodex shows analysts remain optimistic. Their short-term projection sees BTC hitting $134,074 in five days, and $155,864 over the next three months.
Bottom Line
While the Trump-Musk feud has rattled financial markets, Bitcoin’s technical chart suggests a possible rebound. If historical patterns hold true, the recent dip may be a brief pause before a bullish surge, with $130,000 firmly in sight and a potential climb toward $170,000 over the longer term. Investors should watch closely for confirmation of continued momentum and volume resurgence in the coming days.
