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Bitcoin (BTC) is as of late experiencing gains in its price as its variables may well seem to be indicating that more of it will come later in the year. However, there are cryptocurrency experts out there who are suggesting that the king token might experience a pullback.
Bitcoin rally
If recent trading is anything to go by, bitcoin traded in a wavy range on Monday as buyers are likely to be worn out ahead of the $50,000 resistance level. As of writing, BTC’s price sits at $46,000, not to mention that it pretty much remained that way for the past 24 hours.
It was noted that on Monday, the total crypto market broke through the $2 trillion barrier as this according to reports was the first time since mid-May. Notably, both ether and Cardano also shined during this recent cryptocurrency price surge with robust rallies month to date. The two digital currencies rose by 26 percent and 62 percent respectively. This is in comparison with bitcoin’s 16 percent price surge during the same period. As for XRP, it also rose by as much as 70 percent this month alone.
Pullback prediction
Albeit the impressive performance of these digital currencies in the market, crypto pundits are predicting that there could be a pause to this. Managing Director of Fairlead Strategies Katie Stockton has pointed out instances indicating what is called an upside exhaustion in bitcoin in her recent newsletter. According to her, such indications may well seem to support a short period of consolidation as gains are digested and short-term overbought conditions are relieved.
Other crypto analysts’ two cents
Now going back to this recent bitcoin price rally, Chief Technology Officer and co-founder of the crypto hedge fund Strix Leviathan Jesse Proudman threw in his thoughts about what’s happening now as he emphasized several key metrics that could point to more gains.
He said, “With the recent rebound in active wallet addresses, new wallet addresses, and non-chain transactions, all indicators that are often a sign that retail traders are increasingly active in crypto, and bitcoin $50,000 on the horizon, we believe the remainder of 2021 has the hallmarks of an exciting time to be involved with this asset class.”
Valkyrie Investments’ Head of Research Sean Rooney also commented on these recent developments. He mentioned that people will have to expect that the talks surrounding bitcoin as a “hedge inflation and uncertainty” to be reinvigorated as the bigger picture is taking form heading to quarter four.
Further, he also stated, “Judging by the accumulation pattern over the last couple of months, there will be less bitcoin available on exchanges, which should create a tailwind for price.”
Chief Technical Analyst for Token Metrics William Noble, on the other hand, believes that people should be looking at the long-term view of it instead of BTC’s day-to-day price activity. He said that Monday’s price plunge was due to a Federal Reserve’s announcement of tapering in the second half of 2022.
He even highlighted the ongoing global health crisis predicting that it could get worse by the end of this year and into 2022. Noble added that if such prediction fits in the bag, the Fed would probably print out more money. The analyst went on to state that it might create a golden opportunity to purchase bitcoin on small dips at $43,000.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
