Swissblock Warns Bitcoin Could Drop to $58k, Is the Crypto Boom Over?

Swissblock predicts Bitcoin's dip to $58K during a cooling phase.

Mar 14, 2024 - 03:48
Mar 14, 2024 - 03:48
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Swissblock Warns Bitcoin Could Drop to $58k, Is the Crypto Boom Over?
Swissblock Warns Bitcoin Could Drop to $58k, Is the Crypto Boom Over

Bitcoin's recent surge has captured the attention of global investors, but Swissblock analysts are suggesting a potential shift in momentum.

As Bitcoin continues its upward climb, Swissblock analysts have identified a concerning trend. Despite the cryptocurrency reaching new heights, there's a notable discrepancy between its surge and the momentum indicated by the RSI (Relative Strength Index).

This divergence indicates a possible loss of momentum in Bitcoin's rally. Swissblock forecasts a potential decline of up to 20% from its current value in the near term. However, they reassure investors that this downturn is likely temporary, with the upward trend expected to resume eventually.

Swissblock's analysis is rooted in Bitcoin's significant price doubling since late January, without encountering significant pullbacks. Such rapid growth often precedes a period of consolidation, making a correction increasingly probable.

The RSI, a pivotal indicator of momentum, further supports this analysis. The disparity between Bitcoin's price surge and the weakening RSI on the 4-hour chart suggests a potential downturn on the horizon.

According to Swissblock analyst Henrik Zeberg, this correction could materialize within the next few days. However, he emphasizes that investors should view this as part of Bitcoin's broader bullish trend, rather than a sign of prolonged decline.

In addition to Swissblock's assessment, experts at Matrixport also anticipate a period of consolidation for Bitcoin. While they acknowledge the ongoing bull market, they caution that a declining RSI, coupled with high Bitcoin prices, may necessitate consolidation before further gains.

The recent surge in meme coin prices also raises concerns about a potential pullback. Historically, such movements have signaled the latter stages of a crypto uptrend.

Currently, Bitcoin is trading slightly above $73,000, with a modest 2.6% increase over the past 24 hours. The broader crypto market, represented by the Coindesk 20 Index (CD20), has experienced a 4% uptick during the same period.

Also Read: Bitcoin Skyrockets: Hits Historic High Exceeding $71,000 Mark

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