Analyst Believes Bitcoin Uptrend Will Slow Down
Despite the widespread optimism surrounding Bitcoin’s recent uptrend, one analyst believes that the next leg up won’t be as strong as previous weeks. This contrarian view is based on an assessment of the Bitcoin log curves, which suggest that the coin will encounter resistance as it attempts to break higher.
Technical Formations and Contrarian View
While many in the industry are confident that Bitcoin will surpass $70,000 and even reach $100,000 in the coming weeks, this analyst remains skeptical. The basis for this skepticism lies in the examination of technical formations and the comparison with Bitcoin log curves.
Bitcoin Log Curves
The analyst refers to the use of Bitcoin log curves in 2021 to identify price peaks. By analyzing the current price formations and comparing them with these log curves, the analyst draws conclusions about potential future price movements.
Predicted Price Peaks
Based on the assessment of price formations, it is predicted that if BTC peaks in 2024, prices will likely turn around between $77,000 and $149,000. These figures represent layers 5 and 7 of the log curve. However, even with a potential rise to $149,000, there is a downward revision from an initial prediction of $180,000 due to a projected one-year slowdown in growth.
Breakout and Price Peaks
The “red band” of the log curve has been breached earlier than usual. Historically, Bitcoin prices tend to peak three months after this breakout. Therefore, it remains to be seen how this early breach will impact future price movements.
Incentives for Issuers and ETFs
Lower Bitcoin prices have incentivized issuers to create Bitcoin exchange-traded funds (ETFs) and take advantage of buying opportunities during dips. The actions of these issuers have contributed to the recent increase in demand and sentiment, as evidenced by the “extreme greed” indicated by Coinstats’ Fear and Greed Index.
Hot Take: Analyst’s Contrarian View Sparks Debate
The analyst’s contrarian view on Bitcoin’s uptrend has sparked debate among industry experts. While many remain bullish on the cryptocurrency and expect it to continue its upward trajectory, others are considering the potential resistance that may arise as Bitcoin attempts to break higher. This difference in opinion highlights the inherent uncertainty and volatility of the cryptocurrency market.
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