Bitcoin Upside Momentum Expected to Slow Down, Analyst Says

March 8, 2024

Despite the prevailing optimism about Bitcoin’s prospects, an analyst on X suggests that the recent bullish momentum may not sustain its pace. Drawing attention to changes in the Bitcoin log curves, the analyst anticipates the cryptocurrency will encounter resistance as it strives to climb higher.

Bitcoin’s Upward Trajectory May Decelerate

The analyst questions the current enthusiasm surrounding Bitcoin’s upward movement, citing technical analysis that supports a more cautious outlook. While many in the industry predict that Bitcoin will easily surpass $70,000—a milestone that was nearly reached this week—and potentially ascend to $100,000 in the coming weeks, the analyst foresees a more gradual path forward.

BTC Log Curves | Source: CryptoCon via X

On X, the analyst remains optimistic about Bitcoin’s future but highlights the possibility of a slower ascent based on the Bitcoin log curve analysis. This assessment draws comparisons to price patterns seen in 2021, where the tool was used to forecast price peaks.

The analyst notes that if Bitcoin reaches its peak in 2024, prices might pivot between $77,000 and $149,000. This range represents the upper and lower bands of the log curve’s layers 5 and 7.

Even though the analysis suggests BTC might climb as high as $149,000, the target for Layer 7 is considered relatively conservative. By accounting for a one-year period of decelerated growth, the estimated peak has been revised down from $180,000 to $149,000.

At present, Bitcoin has already breached the “red band” of the log curve sooner than usual. Historically, Bitcoin’s price tends to peak three months following this breakout, potentially placing the peak around $77,000, but below the $100,000 mark. However, due to the volatile and unpredictable nature of the market, these projections are challenging to confirm.

The crypto community remains hopeful for what the future holds, especially as Bitcoin continues to trend at historically high levels. Nonetheless, there has been a noticeable slowdown in upward momentum.

BTC Bears Hold the Upper Hand

A review of the daily chart reveals that Bitcoin’s price remains within the range of the bearish candlestick from March 5, which exhibited high trading volume and significant price range. For the uptrend to hold, prices must break past $70,000 with increased trading volume.

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