It seems that Bitcoin may now be rejecting the $19,000 point at which the cryptocurrency stopped a week or so ago, after a monumental increase of some 80% over past weeks.
It wasn’t too long ago that Bitcoin was testing $10,000, then $11,000, then $13,000. It broke through upper resistance barriers like a horse afire, though it has seemed to slow down recently.
At its current price, Bitcoin has enriched even midterm hodlers with returns of double their money.
Now, though, some analysts feel that it’s time for correction.
Tony Spilotro at NewsBTC points to some of the candlestick charts and casts rather simple caveats on Bitcoin such as the assertion that no asset “can go up in a straight line forever,” and pointing out that previous $20,000 highs preceded $6000 lows and worse.
“The message here is don’t rule out anything and considering how volatile Bitcoin can get, and be ready for all potential outcomes,” Spilotro writes. “It also is wise at this point not to trade the cryptocurrency, or risking learning the true value of the phase ‘HODL.’”
At Coindesk, veteran analyst Omkar Godbole gets a bit deeper into some of the possible downside around Bitcoin, saying the coin looks “heavy” on technicals, and citing fears of a no-deal Brexit where British investors are looking to diversify into safer assets.
Godbole also points to a “repeated rejection” of highs which could signal downside potential, and cites some external input for ballast:
“We are leaning bearish here and beginning to unwind some long exposure in bitcoin and DeFi selections,” Godbole quotes Crypto Broker AG senior cryptocurrency trader Patrick Heusser as saying on record. “The reasoning is on some technicals and how the spot market is structured with large orders at around the lifetime high.”
Look out for all of this when you are planning a foray into or out of BTC.