PEOPLEBITCOIN

Adam Cochran: Market Health Rebounds, Bitcoin Will Set New Highs After Consolidating at High Levels

share
Adam Cochran: Market Health Rebounds, Bitcoin Will Set New Highs After Consolidating at High Levels

Recently, after reaching several all-time highs, Bitcoin has retraced and consolidated. Venture partner Adam Cochran believes that signs of a healthy market recovery are now evident. He suggests that increasing positions with spot purchases at this time is the best approach, anticipating that Bitcoin will reach new highs after consolidating at these levels.

Market Health Rebounding, Consolidating for New Highs

Cochran points out recent signs of market cooling, including:

  • Decrease in Bitcoin Open Interest
  • Significant drop in Bitcoin funding rates
  • Aave USDC lending rates also starting to cool down

He believes this indicates the market is moving away from overly bullish sentiment, with funds rebalancing, which is a great signal for future uptrends.

As the market approaches historical highs, uncertainty is quietly creeping back into the market. Cochran emphasizes that it is crucial to avoid excessive leverage and increase spot positions. In healthy market conditions, consolidation or breakthrough at the peak will demonstrate strength.

Where is Bitcoin's Next Support on the Pullback?

After breaking through $60,000 at the end of February, Bitcoin continued its upward trend, setting multiple historical highs, with the highest reaching $73,777. However, a weak consolidation trend has emerged in the past week. Most analysts view this as a healthy performance following an overbought situation.

  • 10X Research sets $63,000 as a potential pullback target for Bitcoin and expects a resumption of the uptrend thereafter.
  • Digital asset analysis firm Swissblock believes $58,000 to $59,000 is a 20% pullback support level.

Bitcoin's current monthly average is around $64,200, which may also serve as an observed support level.