Bitcoin nearly doubled in price since late January, but a “counter move seems to be near,” Swissblock analysts said.
- Bitcoin’s rally shows waning momentum, underscored by a negative divergence between its price and the RSI momentum indicator, Swissblock analysts noted.
- BTC could drop as much as 20% from current prices in the near term, but the uptrend will resume Swissblock forecasted.
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.”
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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.”