- Bitcoin has undergone an extreme rally over recent months, pushing to $28,000.
- Some fear that a pullback is starting to brew as the market shows signs of being overbought on a technical basis.
- Vijay Ayyar, head of business development with crypto exchange Luno in Singapore, recently said that he thinks the market is “close to a top.”
Bitcoin Currently Preparing For a Correction, Some Fear
Bitcoin has undergone an extreme rally over recent months. In the past seven days alone, BTC is up approximately 15%, pushing to new all-time highs at $28,500.
Bitcoin is now up by over 150% in the past three months, having bottomed at $10,000-11,000 in September and October.
While the medium-term to long-term trend remains bullish, some are fearful that a correction is loading.
Speaking to Bloomberg, Vijay Ayyar, head of business development with crypto exchange Luno in Singapore, recently said that he thinks the market is “close to a top,” though added that $30,000 is possible considering momentum.
Ayyar said that Bitcoin could “definitely see a pullback, but the magnitude is probably lesser.”
Where BTC fell by 20-30% during the last bull market many times due to the extremely reflexive nature of this market, he suggested that a move of 10-15% is most likely. Bitcoin dropping by 10% from the current price level would result in a move to $25,200. BTC dropping by 15% from the current price level would result in a move to $23,800.
This expectation of a correction comes as analysts have noted Bitcoin’s chart indicates this market is overbought.
As reported by Bitcoinist previously, one trader, referencing the chart below, recently said:
“BTC – Weekly RSI and Stoch RSI significantly overbought. It has been a trending market and oscillators can remain overbought – but I’m just being cautious here…. Local top?”
Image Courtesy of TraderXO. Source: BTCUSD on TradingView.
The BlackRock Effect?
One key trend that investors are keeping an eye on in the weeks ahead is the potential entrance of BlackRock, the world-famous and leading asset manager.
BlackRock was recently found to be seeking a vice president of blockchain to help service this space.
A BlackRock executive was recently caught saying on television that Bitcoin does have a future as an asset class, arguing that it is better than gold. This sentiment was largely predicated on the fact that BTC is an attractive investment to millennials while the same cannot really be said about gold or certain other assets.
BlackRock’s entrance into the cryptocurrency market could drive an all-time high level of demand for the leading cryptocurrency.
Not to mention that other institutional players continue to siphon capital into the Bitcoin and crypto markets via existing vehicles and institutional venues.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Could Face a Pullback of 10-15%, Warns Exchange Exec