After being in the mid-16,000 dollar range since the middle of December, the flagship cryptocurrency began the week close to the $17,000 level. Bitcoin’s price, which is now over $20,750, has increased by more than 20% in the first two weeks of this year. Despite this, Bitcoin’s (BTC) price which reached a high of $65,000 in November 2021, is currently trading around the bottom of a severe bear market.
Crypto Market Rally
Although the crypto market has turned bullish, a prominent crypto analyst who goes by the pseudonym @CryptoCapo on Twitter, predicts that the market will likely take a U-turn and hit newer lows in the nearby future. Considering a higher timeframe, he points out that the price of Bitcoin is still testing significant resistance. Although a weekly closing will be crucial, there hasn’t been any bullish confirmation; which is the same for the second-largest cryptocurrency Ethereum as well.
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He further points out that apart from Bitcoin, even altcoins are experiencing erratic price surges; the majority of which are also running into resistance. This pattern has repeated itself with each and every bounce in this bear market and creates the deceptive impression of having reached a market bottom. According to him, the traditional markets are also continuing the downward trend as expected. The SPX is consistently setting lower highs, and the earnings session is anticipated to be unfavorable.
He is further quoted as saying:
Invalidations would be clear when new highs are formed on htf and key levels are reclaimed. This has not happened yet.
Bitcoin To Hit Newer Lows?
When shorter timeframes are considered, the Bitcoin price is currently rising at an exponential rate. However, there is a difficulty facing the bulls in the market as, according to him, this move has already gone beyond its intended scope. The weak point at the base of the parabola sometimes results in significant losses and complete reversals when the long-term trend that it represents finally breaks. Due to this, he predicts that Bitcoin’s (BTC) price could possibly retrace back to $12,000.
While speaking on the current market sentiment, he makes the observation that the bulls are not only euphoric, but they are also acting arrogant. The fact that they feel the need to perpetually celebrate a triumph by ridiculing others demonstrates the lack of strength in their arguments. Therefore, he concludes his analysis by saying that the “bearish scenario hasn’t been invalidated” despite the recent bounce in the price and suggests that securing any kind of profits witnessed in this recent pump would be a wise decision.
Also Read: Is This A Sign Of Upcoming Bitcoin (BTC) Bull Run?