Bitcoin’s Cycle Top Is Near, But a 20% Correction is Necessary: Analysts
We might see Bitcoin reaching its cycle top this year, but further analysis suggests a 20% correction is necessary before taking off to new heights.
CryptoCon, a popular technical analyst, highlights the potential for a Bitcoin cycle top, citing indicators such as the Directional Movement Index (DMI), which gauges an asset’s strength and direction while reducing potential false signals.
The analysts suggest that a cycle top could occur in two weeks or three months – around April and June this year.
More Pain to Come?
However, he notes that based on previous DMI signals, the final top has been reached twice in ten months. Therefore, a more likely timeframe for Bitcoin’s cycle top could be by December 2024.
The 2 Week Directional Movement Index tells us that a cycle top for #Bitcoin could be coming very soon, possibly within the next weeks to months.
This would be scheduled to be the first of 2 cycle tops, with a cross of 55.12.
The time it has taken to put in a first top after… pic.twitter.com/cjasD97PTZ
— CryptoCon (@CryptoCon_) March 13, 2024
CryptoCon’s analysis comes amid a new record of net inflows for spot Bitcoin ETFs. As CryptoPotato reported , the investment vehicles saw a high of $1.05 billion, up 56% from $673 million on Feb. 28th. The surge comes as Bitcoin’s price is gripped with greed, hitting a new all-time high above $73,000.]
However, the asset’s price headed south after the recent peak. As reported earlier, BTC slumped by roughly six grand in hours, leaving millions in liquidations. There are also warning signs that more pain could follow soon.
Is A Correction Coming?
According to a Telegram update on Wednesday, Swissblock analysts said Bitcoin is on the verge of entering a cooling period after a meteoric rise over the past month.
A chart by Swissblok analyst and macro-economist Henrik Zeber shows that Bitcoin is facing a negative bearish divergence between BTC’s price netting new all-time highs and a waning relative strength index (RSI).
“No moves without a counter-move. And a counter-move seems to be near.” Swissblock said in the Telegram update. “We see BTC dropping to ~58-59K in its next move.” This is a 20% correction from current prices.
This foreshadows a price pullback as the RSI throws a waning momentum for Bitcoin. However, the analyst suggested that “the top is not in” – meaning that a 20% decline in BTC might pave the way for the cycle top CryptoCon referred to.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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