Analyst: Bitcoin tends to decline 30% or more after such surges
Last week, bitcoin surged above $ 14,000 for the first time in two years, but the movement has stalled since then. Over the past day, the cryptocurrency has lost 1.5% of its value and is traded for about $ 13,500.
Josh Rager, an analyst and co-founder of Blockroots, considers the decline here to be a natural phenomenon, despite the confident close of the weekly candle. “Let the decline come. This shouldn’t surprise anyone. Bitcoin has pulled back at least 30% more than nine times in the last bull market, ”he writes..
Another analyst claims that the weekend’s rise in Bitcoin seemed unconvincing to him, so he decided to go short. “Triple top on major resistance, stocks tumbled last week, elections earlier this week,” he cites factors that could affect the price of bitcoin in the short term.
At the same time, both analysts note that they adhere to bullish expectations from the long-term behavior of the cryptocurrency, and small falls should not be considered something undesirable. “We know where he is going in the long run (up),” Rager writes..
So far, even the co-founder of the Gemini exchange, Tyler Winklevoss, who predicts a multi-trillion dollar capitalization of bitcoin, expects further consolidation: “I do not think that we will see an all-time high until the end of 2020. Although the price rallied from $ 10,000 to $ 14,000 in less than a month, it has not yet entered the breakout stage. When we start to see jumps of $ 3,000 – 5,000, then the bulls are running. “.
Analyst Light argues that buyers are forced to fight for dwindling liquidity from sellers, supplied to market participants in the phase of losing faith. In his opinion, the pressure comes from the institutional side, while the retail segment is not yet overheated, but may soon be exposed to this..
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