The market is still pricing in the impact of another potential Fed interest rate hike, which put a cap on cryptocurrency’s growth this week. After briefly hovering above the $30K milestone, Bitcoin started to decline on Wednesday.
Bitcoin may be approaching a local top, according to a crypto strategist. DonAlt, a pseudonymous analyst, stated that he thought Bitcoin’s rise beyond $30,000 was a range deviation. The range deviation beyond $30,000 is comparable to the range deviation at the bottom, when Bitcoin broke below $18,000 in November of last year, claims the crypto analyst.
“I’m gonna have to be bearish here for the same reason I was bullish at $16,000. Expecting top to be in until proven otherwise. $20,000 or strength is what I’m gonna do anyway. Anything in between likely just gonna be chop for months anyway.”
Range deviations are closely monitored by traders because they may indicate probable trend reversals after fooling some market players.
According to his chart, the price range for Bitcoin at this time is between $18,000 and $30,000. He asserted that the recent rise to $31,000 may have been a trap for Bitcoin bulls now that BTC is trading around $27,317 and back in the range.
The analyst further warned that the market structure and timing of BTC resemble those of the cryptocurrency’s price movement in the beginning of 2021, when it rose from $55,000 to $65,000 in less than two months before plummeting all the way to $30,000. He claimed that before considering returning to the markets, Bitcoin must reach a crucial psychological threshold.
At the time of writing, Bitcoin is trading at $27,610 and is down by more than one percent in the last 24 hours.
Source: https://coinpedia.org/bitcoin/bitcoin-price-analysis-where-btc-price-is-heading-in-coming-week-25k-or-30k/