Bitcoin: Analysts sound the alarm – is the rally over yet?

Last week, the spell seemed broken and the path to new heights for the cryptocurrency Bitcoin seemed clear. But apparently nothing will come of it, the analysts sound the alarm.

Bitcoin (BTC) has so far failed to clear the critical $21,000 resistance heading for fresh highs. Now, the number 1 cryptocurrency seems to be overheating – and analysts are sounding the alarm: Is BTC currently lacking the momentum to start a full-fledged bull run? Is the latest rally coming to an end?

How expensive will bitcoin be?

After a bullish few days, Bitcoin (BTC) now faces its first major hurdle: The $18,100, $18,800 and $19,200 resistances were cleared more or less effortlessly last week – but Bitcoin has so far bit the $21,500 teeth. The digital asset has attempted to climb above $21,000 several times in the past seven days, ending as high as $21,528 in the early hours of this morning (data from Coinmarketcap.com).

However, at the peak of the rally, the coin faced massive selling pressure, causing it to turn lower immediately after – as low as $20,832, where Bitcoin is currently trading. Overall, BTC is down -2.07% in the last 24 hours – the broader crypto market is similarly weak, facing a loss of -2.58%. For example, Ethereum (ETH), the second most valuable cryptocurrency, lost -3.23%, Binance Coin (BNB) lost -3.24%, Solana (SOL) fell almost -7%.

One of the biggest losers right now is the Shiba Inu (SHIB) meme coin. After the announcement of its “Shibarium” upgrade, it was able to gain as much as 18% in a week, but now the Dogecoin competitor is moving in the opposite direction with -11% since yesterday. In short: Green follows red – volatility grips the markets. Once again. What’s next from here? In the medium and long term, the signs point to a bull run – in the short term, Bitcoin and Co. however now threatened with another correction. Popular cryptoanalyst Nicholas Merten, for example, explains why in a new Bitcoin forecast.

Bitcoin: Another Crash Coming?

According to this, the Bitcoin rally of the young year is similar to the last three relief rallies – and each of them was followed by a crash. The increase seen is “typical” of this – he would therefore again “point out that we must be careful”. The analyst also warns of a negative correlation to equities, stressing that if there are larger outflows here, it should also put cryptocurrencies such as Bitcoin and Ethereum under pressure.

Leave a Comment