Bitcoin approaches $40K despite a warning Before the bull market restarts, the Bitcoin price will correct.

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According to one trader, another price drop is necessary before continuing, with a short-term aim of $36,000 for BTC/USD.

Bitcoin (BTC) moved closer to $40,000 on Thursday, as bulls gathered more evidence that the bottom has been reached.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC/USD to $36,000 next?

Data from TradingView showed BTC/USD retaining levels it reclaimed a day before, including the critical $37,500.

Now, all eyes were on the following days for confirmation of a breakout or rejection – volatility was expected to arrive by the weekend.

According to prominent trader Crypto Ed, the market may need another bearish test in the immediate term before resuming its bullish trend with a fury. Meanwhile, it may be a case of grinning and making familiar gestures.

“I believe we are nearing a reversal and a correction during the day before heading back up,” he warned Twitter followers on Thursday.

“BTC to $36k and ETH $2500? Might be a boring day….”

He added that he assumed that BTC/USD is going to correct rather than continue upward.

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Bottom-hunting metrics demand attention

Meanwhile, two new metrics that specifically try to catch Bitcoin price bottoms went live on monitoring resource Glassnode this week in a timely release for traders.

Created by David Puell, well known for his famous Puell Multiple indicator, delta cap and balanced price both provided cues that Bitcoin may already be in recovery.

“Watch out for confluence on these in the next bear,” Puell added.

BTC/USD delta cap vs. price chart. Source: Glassnode

As previously said, many people believe that Bitcoin will form a double top pattern this year, similar to 2013.

Major retracements from local highs were common in both prior bull markets on the path to final peaks, and as such, current behaviour is not unexpected. That was the perspective of PlanB, the originator of stock-to-flow, this week in an interview with podcast presenter Preston Pysh.

 

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