Bitcoin’s Rally Could Precede a Correction, Analysts Warn

Bitcoin recently managed to climb back to $66,000, generating enthusiasm among traders.

Santiment noted that the latest increase has significantly impacted altcoins, as many investors have been taking profits following Bitcoin’s rally over the past three weeks.

The firm cautioned that the patience of bullish investors might be tested as overall market sentiment moves past levels of FOMO (fear of missing out) associated with Bitcoin. This trend typically signals the approach of local peaks. They suggested that such a peak could occur as soon as today, over the weekend, or within the next few weeks, depending on the actions of large holders, or whales, at current price levels.

Analysts indicated that the trading community might be gearing up for a price correction as Bitcoin’s value reaches levels associated with greed, particularly around the $63,000 mark. Conversely, if Bitcoin drops to $53,000, it could trigger a shift into the fear zone, potentially opening up more bullish opportunities.

Santiment defined the range between $63,000 and $53,000 as a neutral zone, where market behavior tends to be less predictable.

Interestingly, analysts believe that Bitcoin may not see renewed buying interest if it falls into the $50,000 to $60,000 range, unless significant warning signs emerge from global economies.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.