Analyst: Bitcoin rally loses steam – critical factors indicate decline
Bitcoin has been in a wild upward trend for the past few weeks, with every setback aggressively buying.
This brought fairly steady profits, and sellers were unable to gain real control over Bitcoin’s price action.
Bitcoin is setting new all-time highs today, its price is recovering above $ 25,000 – and BTC is showing little sign of slowing down any time soon
One trader wrote in a tweet that he was paying close attention to BTC topping out as his rally heats up.
He notes that it would not surprise him if the benchmark cryptocurrency corrected towards $ 19,000 in the next 5 weeks before resuming its growth trend.
Bitcoin has seen massive growth lately regardless of the rest of the crypto market. As BTC rises higher, most altcoins have seen notable losses that have left it unclear whether an „old season“ is imminent.
Chances are that the near-term development of the market will largely, if not entirely, depend on whether Ethereum can make up ground on Bitcoin .
At the moment, this seems like a somewhat distant event as the cryptocurrency has been bleeding against BTC for weeks.
However, one analyst now notes that Bitcoin could soon see a sharp correction. That could be exactly what the altcoins need to get some momentum going.
Bitcoin rises to new highs
At the time of writing, Bitcoin is trading at $ 25,750. This marks a massive surge from its daily low of $ 24,000 that was hit yesterday morning.
Where the crypto asset goes next will likely depend on whether it encounters strong resistance around $ 26,000. Since it is in pricing mode, the chances are it could just keep increasing daily.
Analyst: BTC is likely to see a major correction soon
Although the Bitcoin rally shows no signs of slowing down at the moment, one analyst believes a correction is imminent in the near future. He writes:
“I think the market is nearing a top for BTC. Early warning signs for me are that the duration of each consolidation is getting shorter and the rallies themselves shorter. I wouldn’t be surprised if we saw a 30% correction towards 19-20k in the next 4-5 weeks. „