Many analysts think that Bitcoin price is overbought, hence the expectations of a drop in the short to medium term
Bitcoin price has experienced a massive 50% rally over the past 30 days. There was a time when Bitcoin was trading as high as $ 16,500, though since then dropped to $ 16,200 as buying pressure subsided. At press time, Bitcoin is trading around $ 16,171, down slightly by 2% over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Some analysts argue that Bitcoin price is still in a long-term uptrend
While Bitcoin is still above critical support levels, not all analysts think that Bitcoin has room to scale up.
According to cryptocurrency analyst Flood, Bitcoin price has been topping the pack in the medium term above $ 16,300. With the chart below, Bitcoin’s price action over the past few weeks is well represented.
According to Flood, if using Bitcoin now due to weak share prices (S&P 500, Dow Jones, other indices) and loss of momentum in the Bitcoin market:
“Almost forgot my chart today was a little busy IRL, but a challenge is a challenge. I think going into the wknd; you should be very cautious with getting caught long, especially with equities being bearish. Don’t see much other than we might have topped. I am flat. I’m a bit groggy but topped on LFT; I would be skewed to taking majority shorts above 16.3k until we open and close Monday above this level.”
Analysts say that Bitcoin’s long-term trend remains intact despite the recent weakening in price.
Furthermore, Bitcoin is still early in its cycle. Relative Unrealized Profit/Loss indicator: Has now entered the ‘Greed’ zone on Bitcoin’s latest push up. It sounds bad, but actually, we can spend large parts of the bull cycle in this area.
Bitcoin seems to have room to expand as there are still few retail investors interested in cryptocurrencies.
You can see the Bitcoin price here.
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