Bitcoin Could Drop to $58K as Cool-Off Period Is Imminent, Swissblock Says

Bitcoin

(BTC)
has
been
climbing
ever-higher
over
the
past
month,
notching
new
all-time
highs
on
the
way
with
every
dip
bought
up
quickly,
but
the
largest
crypto
may
be
poised
for
a
cool-off
phase,
analysts
warned.

Digital
asset
analytics
firm
Swissblock
said
in
a
note
on
Wednesday
that
bitcoin
nearly
doubled
in
price
from
$38,000
in
late
January
without
any
meaningful
pullbacks,
and
a
cooling
period
could
be
imminent.

“Nothing
rallies
in
a
straight
line.
Not
even
BTC,”
Swissblock
analysts
said
in
a
Telegram
update.
“A
counter
move
seems
to
be
near.”

Swissblock
analysts
based
their
forecast
on
the
negative
bearish
divergence
between
bitcoin’s
price
inching
higher
but
dwindling
relative
strength
index
(RSI)
on
the
4-hour
chart,
foreshadowing
lower
prices.
The
RSI
is
a
widely
used
momentum
indicator
that
measures
the
speed
and
size
of
an
asset’s
price
changes.

The
pullback
could
materialize
as
soon
as
in
the
next
few
days,
according
to
a
chart
by
Swissblock
analyst
Henrik
Zeberg.
But,
in
the
bigger
picture,
lower
prices
will
be
a
temporary
setback
before
the
uptrend
eventually
resumes
to
new
highs.

“We
see
BTC
dropping
to
$58,000-$59,000
in
the
next
move,”
they
said,
representing
a
20%
decline
from
current
prices.
“But
the
top
is
not
in.”

Crypto
investment
services
firm
Matrixport
also

noted
Tuesday
that
bitcoin’s
rally
is
running
out
of
fuel
and
forecasted
a
period
of
consolidation.
“This
bull
market
still
has
legs,
but
the
divergence
between
a
declining
RSI
and
still
high
bitcoin
prices
could
signal
that
BTC
needs
to
consolidate
before
rallying
again,”
Matrixport
analysts
said.

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Skyrocketing

meme

coin

prices
could
also
signal
an
impending
pullback,
as
rotating
profits
from
large-cap
cryptos
to
riskier
tokens
was
often
the
last
stage
in
a
crypto
uptrend.
For
example,
pepe
coin’s

(PEPE)

breakneck
rally
last
May
presaged
a
15%
decline
in
bitcoin’s
price
in
the
following
month.

BTC
recently
changed
hands
slightly
above
$73,000,
up
2.6%
over
the
past
24
hours.
The
broad-market
Coindesk
20
Index
(CD20)
advanced
4%
during
the
same
period.