In the ever-evolving cryptocurrency landscape, a prominent trader expresses bullish sentiments regarding bitcoin's price trajectory, foreseeing possible new all-time highs.
However, this optimism is accompanied by a note of caution, as the trader, known as CrediBull crypto, warns of an imminent and substantial slowdown for the leading digital asset.
bitcoin analyst warns of correction
CrediBull highlights the high probability of a significant correction after notable surges, drawing parallels with Newton's third law, stating that every action results in an equal and opposite reaction, a principle he believes extends to market dynamics. financial.
With a significant following of over 361,000 on the X social media platform, CrediBull sheds light on bitcoin's historical patterns. He highlights that since bitcoin's inception, the cryptocurrency has withstood three or four cases of sudden drops after parabolic rises.
“For every action there is an equal and opposite reaction”.
This also applies to markets.
If you think we're going to have a parabolic rally to over 100,000 in a relatively short period of time, then you have to accept that an equally aggressive correction will follow…
— CrediBULL crypto (@CredibleCrypto) December 27, 2023
According to the latest market update, bitcoin is valued at $42,650, indicating a 1.0% decline over the past 24 hours and a 2.2% drop over the past week, according to data from Coingecko.
While bitcoin has recently risen to $43,500, marking a considerable win for investors who entered the market when prices were around $16,500 earlier in the year, it is still struggling with a deficit of nearly 40% from its all-time high of nearly $69,000. in November. 2021.
CrediBull crypto attributes the emergence of parabolic rallies to a volatile mix of greed and irrational exuberance, emphatically stating that these sentiments set the stage for potential market crashes.
bitcoin currently trading at $42,791 territory today. Chart: TradingView.com
Anticipating bitcoin's rise to new peaks followed by an inevitable decline, it offers a cautious outlook on the associated risks, urging market participants to be aware of the inherent volatility.
Another expert anticipates volatility
Shifting focus, another luminary in the crypto space, DonAlt, known for accurately predicting the crypto rally earlier this year, shares insights on the future of bitcoin amid widespread anticipation over the possible approval of exchange-traded funds ( btc ETF) from the spot market.
bitcoin-correction-in-january-top-trader-unveils-most-bullish-btc-scenario-after-potential-etf-approval/” target=”_blank” rel=”noopener nofollow”>donalt suggests that the approval of a btc spot ETF could introduce greater volatility into bitcoin, which could lead to a short-lived post-announcement rally followed by a notable correction in the following days.
With a YouTube channel that has more than 55,000 subscribers, DonAlt imagines scenarios in which positive developments, including the long-awaited bitcoin halving and SEC approval of ETFs, could boost the price of bitcoin. .
However, he maintains a certain level of skepticism and characterizes these events as potential occasions to “sell the news.” Digging deeper into potential price moves, DonAlt suggests a possible rise to $45,000 or more after the ETF's approval, followed by a major weekly correction, a cycle he believes will eventually be absorbed as the market trends up.
When navigating the volatile terrain of cryptocurrencies, both Credible crypto and DonAlt emphasize the importance of staying alert, recognizing the potential for euphoric highs and consequent corrections in this dynamic and ever-changing market.
Investors are reminded to exercise caution and think strategically in light of these market dynamics.
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