Why Bitcoin will still drop

Deprecated: mb_convert_encoding(): Handling HTML entities via mbstring is deprecated; use htmlspecialchars, htmlentities, or mb_encode_numericentity/mb_decode_numericentity instead in /var/www/nairametrics/wp-content/themes/nairametrics/functions.php on line 104

Bitcoin, the world’s most popular crypto is obviously having a bullish run that no financial asset has come close to. However, its recent price action shows its tilting towards an overbought position.

What they are saying

Willy Woo, a former partner at Adaptive Capital, a respected Bitcoin analyst in the crypto-verse, gave key insights on what could make the Crypto bulls suffer from exhaustion, as it approaches the $17,000 mark.

READ: Bitcoin breaks up, trades above $16,000

“The spike in coin buying should not be underestimated, it’s the largest spike in the 5-year chart below. Overall BTC remains bullish, however, the price needs to settle.”

“That said, during this pump, the volume of coins scooped off exchanges by buyers was unprecedented. This price move was entirely organic, powered by significant buyer demand rather than the usual trader-driven action on derivative exchanges. I have not seen an organic pump at this scale in years.”

READ: 98% of Bitcoin wallets in profit, hit 2-year high

Meanwhile, BTC Supply in Loss (1d MA) just reached a 2-year low of 328,763.223. BTC previous 2-year low of 329,239.896 BTC was observed on November 6, 2020.

READ: U.S top regulator speaks on Cryptos and future of banking to U.S Congress

What to expect

Taking into consideration the increased buying pressure of the world’s most valuable crypto, Nairametrics’ view on Bitcoin remains bullish in the long term. However, the price needs to cool off at least temporarily. That said, the duration for such consolidation is pretty unknown, as it could be only for a few days or a protracted consolidation for another week or even longer is hard to tell right now.