- Bitcoin has exploded higher over the past few weeks amid mass institutional and retail buying pressure.
- There are some that are calling for a correction, though.
- A historically accurate analyst recently said that Bitcoin may soon be sent to “$15,500-16,000.”
- Another analyst agreed with this sentiment, noting that BTC is breaking below a parabolic uptrend.
Bitcoin Could Be Preparing For a Correction, Analysts Say
Bitcoin has exploded higher over the past few weeks amid mass institutional and retail buying pressure. There have been countless billionaires and big firms announcing their support for the cryptocurrency, forcing retail investors to look more closely at the coin.
While many doubt that these investors are selling their coins, some fear Bitcoin will face some selling pressure in the days and weeks ahead. After all, Bitcoin has gained approximately 70% in the span of six weeks, outperforming basically all other assets over that time frame.
One historically accurate trader is calling for Bitcoin to correct much lower in the weeks ahead.
The pseudonymous trader recently said that Bitcoin may soon be sent to “$15,500-16,000.” This is where Bitcoin consolidated prior to the latest leg higher, making it a logical place where the coin could consolidate on a downtrend.
The trader who made this prediction is the same one that late 2020 predicted that Bitcoin would hit the $3,000s and XRP would hit the $0.11 range. Both cryptocurrencies reached his price targets in March despite many first laughing at his predictions, calling them too bearish.
Another historically accurate trader agrees with his call.
This other trader recently shared the chart seen below, which suggests that BTC is in the midst of breaking down from the parabolic uptrend it began many weeks ago.
When an asset falls below a parabolic uptrend, it often corrects by 60-80% of the uptrend’s value. This is much steeper than Bitcoin analysts think that the cryptocurrency will fall now, though most agree that a move to $15,000-16,000 is entirely logical.
Chart of BTC's price action over the past few months with analysis by crypto trader Bitcoin Jack (@BTC_JackSparrow on Twitter). Source: BTCUSD from TradingView.com
Selling Pressure Hitting the Market
Of note, there purportedly is selling pressure hitting the market. As reported by Bitcoinist previously, analyst Willy Woo noted that there has recently been a spike in Bitcoin Days Destroyed, suggesting increased selling pressure:
“It used to be that peaks in destruction or dormancy would be a bad sign for the market as old Bitcoins have more experienced masters, thus smarter money; this would predict a price drop. These days not always, OG whales also sell bottoms. Smarter money has arrived. Post this now as while there’s so much FOMO and strong fundamentals being blasted out, there’s also signs of the market being overheated locally. I’d be very surprised if we break all-time-high on the first try without a rejection, or consolidation, before a second run at it.”
Still, it has been widely reported that there is a lot of Bitcoin being bought by institutional players, as evidenced by a consistent time-weighted average price buy on top exchanges, suggesting an OTC desk accumulating coins.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k