CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$35,899.00
  • ethereum
    ETH$1,227.67
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Analysts Warn of Correction After Bitcoin’s 30% Weekly Rally

    Analysts Warn of Correction After Bitcoin’s 30% Weekly Rally

    Author: Martin Young

    Last Updated Jan 7, 2021 @ 05:52

    What goes up must come down, and Bitcoin is no stranger to hefty market corrections. Industry analysts and observers are starting to wave the warning flags as the asset keeps making new highs.

    Another record high was registered by Bitcoin a few hours ago as it hit $37,780 for the first time according to Tradingview.com. The move has added a further 6.5% to the price over the past 24 hours and a whopping 30% over the past seven days.

    It is now trading way above daily moving averages and other technical indicators such as the relative strength index are screaming ‘overbought’. Additionally, the Bitcoin fear and greed index is planted in the 90s signaling ‘extreme greed’.

    Such a parabolic move is unnatural and markets need to correct to maintain health and re-establish trend lines. As we have seen in previous rapid-paced rallies, Bitcoin never fails to pullback, sometimes just as hard and just as fast.

    Bitcoin Correction Imminent?

    Industry analysts and observers have started to warn about an imminent correction for Bitcoin and it is likely the entire crypto market will follow in its usual lemming-like fashion.

    CEO and founder of Nuggets News, Alex Saunders, posted a few warning signs such as a large jump in coins to exchanges, and the highest unrealized profits since the peak in December 2017.

    I’m waving the yellow flag…
    – Large jump in coins sent to exchanges.
    – Highest unrealised profits since Dec 2017
    – Spike in total number of coins on exchanges

    Pullback coming. ⚠️🚨⤵️ #Bitcoin $BTC

    Great data from @cryptoquant_com & @glassnode & @santimentfeed. pic.twitter.com/NDa50T9jiS

    — Alex Saunders 🇦🇺👨‍🔬 (@AlexSaundersAU) January 6, 2021

    Bitcoin moving to exchanges could be a signal that traders and holders are preparing to sell and take profits. Saunders added that trying to time the market will end in tears for the majority of traders, but on a positive note BTC could hit six figures in this cycle;

    “I think we are going to $100k this cycle & $1M in the next 10 years. But I don’t want to see any of you get rekt short term. This is the reason for my warning post.”

    Also waving the red flag and indicating overbought zones in previous bull markets was chart guru Peter Brandt who stated that ‘historic bull markets become historically overbought’.

    Bitcoin $BTC is redefining the concept of “overbought.” Bull markets become and remain overbought. Major bull markets become overbought majorly. Historic bull markets become historically overbought. Red arrows mark midpoints of parabolic advances pic.twitter.com/OZB7IBXPbg

    — Peter Brandt (@PeterLBrandt) January 7, 2021

    More Momentum For BTC?

    Analyst Willy Woo a little more bullish with a chart showing ‘speculative premiums’ compared to previous market cycles. He added that;

    “This rally is warm but not yet overheated.”

    This does not mean things will not correct before momentum resumes and the rally is over. Average previous pullbacks have been at least 30% so, from current prices that would drop Bitcoin back to around $26k which is still above its former ATH.

    There is also the notion that the monster institutional funds that have been hoovering up the asset are unlikely to sell at any price.

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • BitcoinEthereumSquarePayPal
      The Digital Age Is Here: Crypto And Fintech Companies Soar, While Bank Stocks Tank
    • Almost $400 Million Short Positions Liquidated as Bitcoin Price Blasts Through $20,000
    • growth_cover
      Room To Grow: Bitcoin Price Has More Upside According to Social Sentiment
    Read more on: Bitcoin Bitcoin (BTC) Price

    About The Author

    Martin J. Young View more posts by this author

    Martin has been writing on cybersecurity and infotech for over two decades. He has previous trading experience and has been covering developments in the blockchain and cryptocurrency industry since 2017. Contact Martin: LinkedIn

  • bitcoin
    BTC$35,899.00
  • ethereum
    ETH$1,227.67
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    binance
    Bitcoin Editorials
    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!