The founders of analytics firm Glassnode say that Bitcoin (BTC) is likely about to correct significantly after an over-extended move to the upside.
Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform X, say that with price and sentiment getting hot, a five-wave correction to lower prices is potentially around the corner.
The analysts target the $58,000 level as a potential support level before BTC can continue higher on a longer-term bull market.
“Nothing rallies in a straight line. Not even BTC
BTC has been on a tear. In late January BTC was at $38,000. In early March it was at $72,000.
No moves without a counter-move. And a counter-move seems to be near.
We observe negative divergence – as BTC has rallied into its highs in a 3-wave structure (a B-wave). Sentiment is hot at $89,000!
It is time for a COOLER.
We see BTC dropping to ~$58-$59,000 in its next move. But Top is NOT in.”
The Glassnode founders also note a divergence between Bitcoin’s relative strength index (RSI), a momentum indicator, and the upward price trend for BTC. Traditionally, when RSI trends in the opposite direction of price, it hints that a reversal may be brewing.
Not all analysts are convinced that a Bitcoin correction is imminent, however. Economist Alex Krüger recently predicted that BTC would tag somewhere around the $85,000 level before diving into the $55,000 range.
Says Krüger,
“Bitcoin is in a supercycle (shorter shallower dips).
Macro is still looking good.
Crypto markets are heated up and euphoric.
ETF inflows can sustain and drive prices further regardless.”
Krüger also sees Bitcoin rallying to as high as $85,000 only to witness a 35% devaluation after.
“Can see something like this: $85,000 => $55,000 => $120,000 => $85,000.”
At time of writing, BTC is trading at $72,876.
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