It is a gravitational law that whatever goes up must come down. And since we are still on earth, many crypto pundits have called for a Bitcoin correction. Unless the digital asset has finally gone to the “moon,” the warnings of several industry analysts and observers may come to pass anytime soon.
Considering Bitcoin’s past, the digital asset is no stranger to massive market corrections. These usually happen after a notable Bull Run. Surprisingly, Bitcoin is defying all to continue its ascent to new all-time highs. Since November last year, the cryptocurrency has remained on an upward trajectory with very minimal negative price actions.
Bitcoin just set a new high a few hours ago by hitting $37,780. This is a gain of 6.5% in the last 24 hours and a whopping 30% over the last seven days. Data however suggests that the asset is trading above the daily moving average with other technical indicators pointing to an ‘overbought’ asset. Moreover, Bitcoin’s fear and greed index is above 90, suggesting “extreme greed and FOMO.”
Cryptocurrency Fear & Greed IndexThat being said, analysts say that a Bitcoin correction is imminent. CEO and founder of Nuggets News, Alex Saunders, raised several points in a series of tweets explaining why Bitcoin may see a correction soon.
I'm waving the yellow flag... - Large jump in coins sent to exchanges.- Highest unrealised profits since Dec 2017- Spike in total number of coins on exchanges Pullback coming. ⚠️