‘Even In A Parabolic Bull Run’ Bitcoin Can See 30% Pullbacks – Top Analyst

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As a seasoned researcher with over two decades of experience in financial markets, I have witnessed various market cycles and learned that patience is indeed a virtue when it comes to investing. Bitcoin’s recent pullback might be causing some unease among investors, but I find it reminiscent of the old adage, “What goes up must come down, so it can go up again.

As an analyst, I’ve observed a 7% pullback in Bitcoin from its record high of $99,800, falling short of breaking the psychologically significant $100,000 barrier. While this dip may have raised some eyebrows among investors, it is generally viewed as a healthy consolidation period, allowing Bitcoin to gather strength before resuming its upward trajectory.

As a researcher delving into the world of cryptocurrencies, I’ve noticed some concerns about Bitcoin reaching its peak in this cycle due to recent setbacks. However, top analyst Ki Young Ju, CEO of CryptoQuant, has provided insights that suggest otherwise. According to his technical analysis on Bitcoin (BTC), even during intense bull runs, like the parabolic ones we’ve seen, BTC can experience substantial pullbacks—these drops can be as deep as a staggering 30%.

Over the coming weeks, it’s crucial to see if Bitcoin (BTC) can regain its pace and possibly surge past the $100,000 mark, or if we’ll witness more declines in its price. Investors are keeping a close eye, maintaining a blend of caution and hope as BTC navigates its current phase of price fluctuations.

Bitcoin Bull Run Is Only Starting

The steep upward trend in Bitcoin’s price, which some refer to as its parabolic surge, is expected to continue. The swift jump from $67,500 to $99,800 serves as evidence of this bullish momentum. However, even though Bitcoin has seen remarkable growth, top analyst and CryptoQuant CEO Ki Young Ju has presented a technical analysis on X, implying that during such a parabolic rally, Bitcoin might still undergo notable declines reaching up to 30%.

On numerous occasions, a similar trend has emerged, like when Bitcoin’s value increased from $17,000 to $64,000 in 2021. Even significant pullbacks didn’t manage to halt the overall uptrend.

This study indicates that while a quick correction isn’t imminent, it underscores the necessity of handling risk effectively. It is crucial for investors to refrain from selling in haste during market lows, as these corrections are integral to Bitcoin’s price development and help weed out less committed players. As Bitcoin consistently sets new highs and maintains its bullish trajectory, corrections can be viewed as chances instead of triggers for leaving the market.

From my perspective as an analyst, I find myself buoyed by the current trajectory of Bitcoin. It’s not uncommon to see optimistic investors viewing this upward trend as the start of an extended bullish phase. They foresee Bitcoin pushing higher, with altcoins mirroring its movement. The coming months offer promising prospects for Bitcoin and the entire cryptocurrency market, provided that we, as investors, maintain our patience and resilience during any anticipated price fluctuations.

Testing Liquidity Above $90K

At present, Bitcoin is being transacted at approximately $92,100 following a test of significant liquidity points that may function as areas where demand for price increases. The fact that Bitcoin has been consolidating around these levels indicates that it might continue to stay strong and move further upwards towards surpassing the $100,000 milestone. Nevertheless, if BTC cannot sustain its position above the $90,000 threshold, this could indicate a potential correction, undermining the bullish structure and causing the price to decrease.

As a crypto investor, I’d keep a close eye on the $88,500 level. Dropping below this point might trigger a deeper correction, reshaping Bitcoin’s price trend for the upcoming weeks. This could lead to more consolidation or a substantial retreat, which may curb the short-term growth potential.

To keep dominance, Bitcoin (BTC) needs to hold above the $90,000 mark and prevent any significant drops to around $88,500. If the interest stays robust at these prices, BTC might regain its bullish trend, aiming for new records and potentially breaking through the much-anticipated $100,000 barrier.

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2024-11-27 11:11