Bitcoin Expects to Run Sideways or Down Until Spring 2021: Analyst

Spread the love

Bitcoin’s 100 percent price rally over the previous eight weeks is close to reckoning, according to Florian Grummes of Midas Touch Consulting.

In his newsletter, the investment strategist said that the BTC/USD exchange rate expects to go through a lengthy correction. He noted that despite the euphoria that led its prices up by more than 400 percent from its mid-March nadir, the pair still got into a “heavily overbought situation.”

Red Flags amid Green Candles

In retrospect, certain technical indicators that measure an asset’s momentum against its running trends show Bitcoin as an overbought financial instrument. That typically translates into this: traders’ bid for the benchmark cryptocurrency now stands higher than its actual cost, signified by a neutral momentum indicator.

For instance, the Stochastic Oscillator, which Investopedia calls “an accurate buy and sell indicator,” shows Bitcoin in an overbought zone on its weekly chart. A similar metric, known as the Relative Strength Indicator, also reflects that the cryptocurrency is too hot to handle at current prices.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin broke above its classic falling trendline resistance in July, pointing to a sustainable uptrend. Source: BTCUSD on

Mr. Grummes noted that Bitcoin remains bullish on its weekly timeframe, pointing to a long-term uptrend that should follow suit in 2021. With that said, the analyst said the cryptocurrency would first likely correct lower or run sideways to neutralize its overbought signals. But after that, it should probably resume its uptrend.

“One must bring along nerves made of steel too in order to be able to bear and get through possible huge pullbacks in the magnitude of 30-45% from current price levels,” he warned, nevertheless.

Bitcoin Seasonal Indicator

Mr. Grummes also measured Bitcoin’s correction longevity based on its seasonal fractals. For instance, the last two Decembers saw the cryptocurrency facing extreme selling pressures from bears, eventually leading BTC/USD to its seasonal bottom rates. This time, the signs are those of topping out that could remain until the spring session.

“Frequently, bitcoin’s bull run has been running out of steam at the beginning or mid of December,” said Mr. Grummes. “Either it followed a sharp corrective move and/or a sideways consolidation lasting several months.”

Having said that, the analyst noted that Bitcoin could still form a new record high above $20,000, a psychological upside target, but may not able to hold the flipped level as support.

RECOMMENDED READ:  Cardano, Litecoin And Binance Coin Lead The Altcoin Market

BTC/USD was trading at $19,372 at the time of this writing.

 278 Interactions,  8 today

Romanian university intends to consider cryptocurrency payments for admissions fees.

The academic college, which has about 11,000 students, stated that the inclusion of crypto payments was part of a campaign Read more

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more

Fidelity’s Tom Jessop on why Crypto has reached a “tipping point.”

The crypto market has gained traction as a result of low interest rates and fiscal stimulus, according to a Fidelity Read more

How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

The cryptocurrency market cap has surpassed $2 trillion, making it as valuable as Apple.

For the first time, the total market value of all cryptocurrencies exceeds $2 trillion. According to Goingecko numbers, the total Read more

Why crypto analyst Ben Armstrong says, ‘He Very Confident Bitcoin Will Reach $300K This Year.’

Recently, blockchain expert and influencer Ben Armstrong mentioned Bitcoin in a video posted to his highly popular YouTube channel “BitBoy Read more

Binance Coin, Dogecoin, SushiSwap Price Movement Analysis for 4th April, 2021

Binance Coin predicted that fresher record thresholds will be set in the coming days due to solid technicals. Following a Read more

Tron Price Movement Analysis for 4th April, 2021

In the cryptocurrency industry, excessive uncertainty has had a long-term effect on the price of the digital commodity. This uncertainty Read more

Chainlink, DigiByte, Enjin Coin Price Movement Analysis for 4th April, 2021

Bitcoin faced some selling pressure just above the $59k mark, leading it to slip to $56,600. The majority of the Read more

Bitcoin fell by more than 4%, causing many other cryptocurrencies to plummet drastically.

The world's most expensive cryptocurrency fell 4.1 percent, bringing several other coins down with it, sending the economy into the Read more

Leave a Reply

Contact Us