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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 to $36,000 next?
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.
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.
“Watch out for confluence on these in the next bear,” Puell added.
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.