Bitcoin Price May Crash Before BTC Rally To $320k This Cycle: Analysts

Key Insights:

• Bitcoin price hovers near the $110k zone, with on-chain data indicating strong market interest.
• Recent market trends hint at a pullback ahead for BTC price.
• A top analyst predicts a potential Bitcoin rally to $320k this cycle.

Bitcoin price has showcased strong momentum recently, adding around 4% in the weekly chart. However, as BTC hovers near the brief $110k support, market pundits have shared mixed insights on the future trajectory of the flagship crypto.

For context, some experts advised caution, citing the current market trends and sentiment. On the other hand, others have shared bullish forecasts on the potential future performance of the coin.

Bitcoin Price Recent Performance

BTC price today was marginally down and traded near the $109,500 mark, with its one-day volume soaring over 4% to $50 billion. Notably, the crypto has touched a high of $110,376 and a low of $107,609 in the last 24 hours. Besides, it recently reached its all-time high (ATH) of $111,970 on May 22.

It’s worth noting that Bitcoin price has added more than 16% in the monthly chart. Besides, CoinGlass data showed that BTC Futures Open Interest was up over 1% in the 24-hour timeframe, indicating growing confidence among traders.

However, with Bitcoin hovering near its ATH, some investors are evaluating the potential future performance of the coin. For instance, concerns over profit-taking strategy, which is common in the trading space, have soared as the price has gained momentum recently.

Bitcoin Price May Face ‘Pullback’: Matrixport

The leading financial analytics firm, Matrixport, has sparked concerns with its recent warning over a potential Bitcoin price correction ahead. In a recent report, Matrixport noted that “Bitcoin’s option skew” has dropped to nearly -10%. This indicates that the investors are focusing more on chasing upside potential than hedging against downside risk.

This extreme bullish sentiment is often a “contrarian signal that precedes a pause or pullback” in the market, Matrixport noted.

Meanwhile, Matrixport said that traders have been betting high on Bitcoin price since mid-April, but it may be time to start reducing risk. With sentiment broadly bullish, the firm recommends staying patient and waiting for more attractive entry points.

The warning comes as Bitcoin price continues to surge, with many traders betting on further gains. While Matrixport’s warning doesn’t necessarily mean a crash is imminent, it does suggest that traders should be cautious and prepared for potential volatility.

What Lies Ahead For BTC?

The recent comments from Matrixport have undoubtedly fueled discussions in the market. However, evaluating the current performance of BTC price, other analysts have shared bullish forecasts for the crypto.

For instance, in a recent X post, expert Michael van de Poppe said that Bitcoin price may face a likely correction before it rallies to $120-$130k in the coming days. However, looking at the current performance, he noted that the current market performance invalidates “a potential correction on Bitcoin”.

He noted that although a slight pullback was there, the market was quick to support BTC to hold its $109k support in the last 24 hours. Having said that, it appears that the crypto might continue to rally in the ongoing cycle with slight pullbacks in between.

How High Can BTC Go This Cycle?

With the current surge in Bitcoin price, many are questioning how high the crypto can go this cycle. Allaying the concerns, analyst Gert van Lagen said that BTC can hit $320k in the coming days.

The analyst said that the “4-year Bullish Megaphone pattern retest” is completed, confirming a trend continuation. This development is expected to trigger further gains in BTC, driving its value to a new high.

Simultaneously, Van Lagen noted that the “Step-like Formation is fully validated”, indicating that Bitcoin has entered discovery mode. This would represent a significant surge, with price increases of over 50% beyond recent levels.

Simultaneously, a recent report also highlighted top cryptos to buy as BTC is poised to hit $250k this year. This also indicates the bullish sentiment hovering among investors, which might help more gains the flagship crypto ahead.