Bitcoin ‘Looks Exhausted’ as Some Analysts Predict a Correction to $69K
After reaching new all-time highs, Bitcoin (BTC) is facing skepticism from traders who anticipate a pullback. Concerns are rising that the current bull market may be nearing its end, with some analysts forecasting a significant correction. This outlook considers both historical price patterns and current market indicators.
Potential Cycle Peak in Q4
Despite Bitcoin’s recent surge, long-term analysis suggests a possible return to lower prices for consolidation. Stockmoney Lizards, a popular trading resource, highlighted a roadmap from late 2023 indicating a “cycle peak” in Q4 of this year. This roadmap suggests a subsequent bear market could drive BTC/USD back to $69,000, levels last seen in 2021.
According to the analysis, while the timeline has been fairly accurate, price is a bit lower.
Historical Patterns and Exponential Moving Averages (EMAs)
Crypto Chase, a well-known trader, pointed out that Bitcoin’s price is currently far above typical bull market exponential moving averages (EMAs). Historically, significant deviations above these EMAs have often been followed by pullbacks, even if brief, before further upside.
“Even if that pullback if brief before more upside, it’s a pullback.”
The increasing presence of institutional buying power could influence price performance, potentially favoring bullish scenarios.
Market Exhaustion and Support Targets
Several market participants anticipate a significant downturn this month. Support targets range from $105,000 to $90,000, with some believing the bull market is running out of steam. Trader Roman described Bitcoin as “looking exhausted,” citing bearish divergences in the relative strength index (RSI).
Conclusion
While Bitcoin has achieved new all-time highs, many traders and analysts are preparing for a potential correction. Factors such as historical price patterns, EMA deviations, and RSI divergences suggest that the current bull run may be approaching its end. Keep an eye on these indicators as they could signal important shifts in the market. As reported by Cointelegraph, the debate continues whether Bitcoin will continue its upward trajectory or experience a significant pullback.
Disclaimer
The information provided in this article is for informational purposes only and does not constitute financial advice. All news content is sourced from trusted platforms like Cointelegraph, Bitcoinist, and our own writers written with added value, editorial insights and reviews by our team. Always do your own research before making any investment decisions.
