bitcoin prices are volatile and recently fell from the high of over $73,000 in March to current spot levels. Analysts are turning to historical data for insights into growing selling pressure and some investors' concerns about potential short-term losses. This historical analysis is crucial in determining whether we have reached a market high or if this is just a temporary pause before the trend resumes.
Will the depth of this correction depend on this?
In a post on x, an analyst twitter.com/CryptoCon_/status/1775169680887484444″ target=”_blank” rel=”nofollow”>saying The depth of the current correction will largely depend on whether bitcoin is “parabolic” or not. Whenever an asset registers “parabolic” prices, it means that its valuation has increased dramatically and, at some level, analysts think it is unsustainable.
In that case, prices tend to cool down later, but after key resistance levels and even all-time highs have been broken. If this is the case, then the current cooldown could suggest the formation of a potential “first cycle top” at the March 2024 all-time high of $73,800.
This formation will be similar to those seen in April 2013 and 2021.
However, in another scenario, traders should expect a different deal, assuming the recent price growth was not unsustainable or parabolic. Assuming this is the case, bitcoin is likely to continue bleeding and revisit established support levels.
The analyst predicts a possible correction to the support level of $53,600 in the coming sessions. tIts decline, the analyst continues, will allow the formation of a “softer curve like that of 2016-2017.”
The influence of the bitcoin halving
Aside from this assessment, another analyst is introducing the concept of the bitcoin pre-halving cycle. Typically, and looking at historical formations, prices tend to collapse before the halving event, which is scheduled for the third week of April.
In a publication in x, the analyst twitter.com/rektcapital/status/1775198425270661355″ target=”_blank” rel=”nofollow”>saying The current rejection and the bulls' failure to push prices higher suggest that the coin could consolidate between $60,000 and $70,000 in the coming weeks.
bitcoin remains under pressure and will likely post even more losses in the coming days. Based on the daily chart formation, btc prices are trending below the mid-BB. Notably, it is encountering strong rejection from the $71,700 zone.
Although the bullish trend persists, buyers will only be in control if prices rise, reversing current losses, preferably with increasing participation levels.
Featured image of DALLE, TradingView chart
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
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