Bitcoin to Face Temporary Correction? Analysis Firm Predicts BTC to Drop to $58,000
Digital asset analysis company Swissblock analyst said that no asset will continue to rise in a straight line, and neither will Bitcoin.
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Swissblock: Bitcoin will face a temporary correction
Is Dogecoin a Doomsday Tank?
Swissblock: Bitcoin will face a temporary correction
Foreign media
CoinDesk
quoted Swissblock’s report, stating that the price of Bitcoin has nearly doubled from $38,000 at the end of January, and there has been no significant pullback, indicating that a correction period may be imminent.
Swissblock analyst said:
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No asset will continue to rise in a straight line, and neither will Bitcoin.
Swissblock analyst’s prediction is based on the 4-hour RSI technical indicator of Bitcoin, which suggests that Bitcoin will rise slightly, but the RSI continues to decline, forming a bearish divergence, indicating the possibility of a price decline.
Analyst Henrik Zeberg believes that the pullback could be realized in the next few days at the earliest, but from a larger time frame, the pullback will only be temporary.
He expects Bitcoin to fall to $58,000 to $59,000 in the next step, a 20% decline from the current price, but it will continue to hit new historical highs afterwards.
Is Dogecoin a Doomsday Tank?
Matrixport also mentioned on the 12th based on the RSI indicator that despite the price support, the sinking of the RSI and the divergence from the Bitcoin price may indicate that Bitcoin needs to consolidate before rebounding again.
Finally, the surge in Dogecoin may also represent a pullback indicator. CoinDesk pointed out that investors’ returns have shifted from the cryptocurrency market to high-risk, small-cap tokens, often in the final stages of an upward trend.
For example, Bitcoin reached a phased high of $31,043 in April last year, and then PEPE set a new historical high on May 6th, and Bitcoin didn’t hit its lowest point until June 14th at $24,791, before starting another uptrend.
BTC/USDT daily chart | Source: OKX
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