The crypto markets have thrived in the past few days, with multiple events fueling the upswing. The global market cap increased by more than 10%, reaching levels above $1.1 trillion from lows of around $930 billion. Bitcoin’s price has surged heavily since the past weekend and has increased by more than 30% to mark the yearly high of $26,200.
However, the bulls appear to have vested to some extent as the prices have been consolidating very hard and also flashing the possibility of a minor pullback in the coming days. In such a case, the possibility of a dead cat bounce could be high, where-in the price may witness a steep drop, slashing the crucial support.
The BTC price has skyrocketed several times in recent times, making investors more optimistic. High volume columns are seen around the $20K area, and a similar column was witnessed around $24,000 also. Hence, it is flashing the signals of a correction after a very hot rally.
According to the technicals, the strength index is weakening on the hourly chart. Therefore, before a strong increase, one can witness a prior reflection of the strength index next to the price barrier support line.
Besides the 4hr timeframe, the strength index soared high to reach the peak and displayed a bearish divergence. Therefore, raising the possibility of a ‘dead cat bounce’ that may drag the price lower to $22,000 after it faced a steep rejection from the current level.
Bitcoin Prediction Today
Source: https://coinpedia.org/price-analysis/attention-traders-dead-cat-bounce-is-approaching-will-bitcoin-btc-plunge-to-its-initial-levels/