The largest cryptocurrency has reached record highs over the past month, but analysts warn of the onset of a cooling phase of the markets.
Representatives of Swissblock said that the value of BTC has doubled since the end of January from $38 thousand without a significant rollback, so a cooling-off period is inevitable. The forecast is based on a negative bearish divergence between the slowly rising BTC price and the decreasing relative strength index (RSI). The RSI is a widely used momentum indicator that measures the speed and size of changes in an asset’s price.
According to the chart of Swissblock analyst Henrik Zeberg, a pullback may materialize in the next few days. It is assumed that the price of BTC will drop to $58 thousand.
Matrixport also announced the forecast for the consolidation period on Tuesday.
The rapid rise in memecoin prices may also signal an impending pullback, as the shift of profits from large-cap cryptocurrencies to riskier tokens has often been the last stage of an uptrend of digital assets. For example, the dizzying growth of PEPE in May last year foreshadowed a 15% decline in the price of BTC next month.
Earlier this week, BTC was trading just above $73K. At the time of writing this article, its price has dropped to $68K.