Bitcoin Cycle Top Could Be Approaching, Analyst Suggests
A popular technical analyst known as CryptoCon has highlighted the potential for a cycle top in Bitcoin. The analyst points to indicators such as the Directional Movement Index (DMI) as evidence for this prediction.
According to CryptoCon, a cycle top could occur within the next two weeks or three months, specifically around April and June of this year. However, based on previous DMI signals, the final top has historically been reached twice in ten months. Therefore, a more likely timeframe for Bitcoin’s cycle top could be by December 2024.
Possible Correction on the Horizon
In addition to CryptoCon’s analysis, Swissblock analysts have also suggested that Bitcoin may be entering a cooling period after its recent meteoric rise. They point to a negative bearish divergence between BTC’s price reaching new all-time highs and a waning relative strength index (RSI).
This divergence indicates a potential price pullback, with Swissblock predicting a 20% correction from current prices, bringing Bitcoin down to approximately $58-59K. However, they also note that “the top is not in,” implying that this decline could pave the way for the cycle top mentioned by CryptoCon.
Record Inflows for Spot Bitcoin ETFs
Meanwhile, spot Bitcoin ETFs have experienced a surge in net inflows. As reported previously, these investment vehicles saw a record high of $1.05 billion, representing a 56% increase from $673 million on Feb. 28th. This influx of funds coincides with Bitcoin’s price reaching new all-time highs and a growing sense of greed among investors.
However, following the recent peak, Bitcoin’s price took a downward turn, dropping by approximately $6,000 in just a few hours. This sudden decline resulted in significant liquidations and has raised concerns about further price drops in the future.
Conclusion: A Potential Cycle Top for Bitcoin
The analysis from CryptoCon and Swissblock suggests that a cycle top may be approaching for Bitcoin. While CryptoCon points to indicators like the DMI to predict a timeframe for the cycle top, Swissblock highlights a bearish divergence and potential price pullback as signs of an impending correction.
It’s important for crypto investors to monitor these developments and consider the possibility of a cycle top in their investment strategies. Whether it occurs in the next few weeks or months, or potentially by December 2024, being aware of these trends can help investors make informed decisions about their Bitcoin holdings.
Hot Take: Brace Yourself for Bitcoin’s Cycle Top
As Bitcoin continues its volatile journey, there are increasing indications that a cycle top could be on the horizon. Analysts like CryptoCon and Swissblock are pointing to various factors such as technical indicators and bearish divergences that suggest a potential correction and eventual cycle top for Bitcoin.
While the exact timing of this cycle top remains uncertain, it’s crucial for crypto investors to stay vigilant and consider the possibility of a downturn in Bitcoin’s price. By staying informed and adapting their strategies accordingly, investors can navigate the ever-changing landscape of cryptocurrency with confidence.
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