Bitcoin rebounded toward the $70,000 mark as prominent market watchers flagged a potential accumulation window. Analyst Merlijn said the asset has re-entered the “DCA zone” on the widely followed rainbow chart, a level he claims has historically preceded strong upside moves. Veteran trader Peter Brandt also pointed to an impending breakout, while caution remained around a critical support near $60,000.
Bitcoin Reenters “DCA Zone” on Rainbow Chart
In posts on X, crypto analyst Merlijn reported that Bitcoin has moved back into the dollar-cost averaging (DCA) band on the rainbow chart—a long-term, color‑banded valuation model some traders use to contextualize price ranges. According to Merlijn, previous returns to this zone have often coincided with panic selling from retail investors before subsequent rallies. He asserted the chart “has never been wrong,” though such heuristic models are not guarantees of future performance.
Key Levels: $60,000 Support and $70,000 Resistance
Merlijn highlighted Bitcoin’s tight trading band between $60,000 and $70,000, calling the lower boundary a “last line of defense.” His analysis suggests:
- A sustained hold above $60,000 could keep buyers in control and open the door to a larger advance—potentially beyond $120,000 if momentum builds.
- A decisive break below $60,000 could expose liquidity pockets lower on the chart, increasing the risk of a deeper pullback.
The analyst also noted that Bitcoin’s current structure resembles the sequence of lower highs seen around the 2021 peak, which ended with a “final flush” followed by a sharp recovery. Other market commentators, including Benjamin Cowen, have argued that recoveries often align with Bitcoin’s four‑year cycle dynamics.
Peter Brandt Flags Potential Upside Breakout
Veteran trader Peter Brandt said Bitcoin’s daily and weekly structures indicate an upside “breakout” could be near. His accompanying chart targeted approximately $82,500 in the near term, while his longer‑term projections outlined possible moves toward $120,000 and, in a more extended scenario, $280,000. Brandt recently described Bitcoin’s push to $74,000 as a potential inflection point in trend behavior since last October.
Market Snapshot
At the time of writing, Bitcoin traded around $69,900, up more than 3% over the past 24 hours, according to CoinMarketCap. The $70,000 area remains a key psychological and technical hurdle, with bulls aiming to convert it into support and bears defending it as resistance.