Price analysis 1/4: BTC, ETH, XRP, LTC, DOT, BCH, ADA, BNB, LINK, BSV – Cointelegraph

Price analysis 1/4: BTC, ETH, XRP, LTC, DOT, BCH, ADA, BNB, LINK, BSV - Cointelegraph

Bitcoin (BTC) price plunged by about $3,400 in an hour, warning traders that corrections during a parabolic move are likely to be sharp. Data from Glassnode shows that the fall resulted in the liquidation of Bitcoin futures long positions worth about $190 million on Binance within an hour, the largest to date.

In a strong uptrend, corrections are swift but short-lived because investors who expect the rally to continue use the dips to buy.

Binance US CEO Catherine Coley believes the Bitcoin could climb to “$75,000 to $100,000” by the end of this year. Meanwhile, investor Raoul Paul is even more positive as he anticipates Bitcoin to hit anywhere between “$400,000 to $1.2 million” in 2021 if the bull trend continues.

Daily cryptocurrency market performance. Source: Coin360

The huge bullish projection in BTC price is largely due to the institutional adoption of Bitcoin. In a recent interview with BBC, Galaxy Digital founder and CEO Mike Novogratz said: “As the institutions move in, there just is not a lot of supply […] There are a lot more than 21 million millionaires out there.”

While the retail traders may have missed out on Bitcoin’s rally, they are coming back with a vengeance by buying altcoins that have surged to multiyear highs in the past few days. This has pulled Bitcoin’s dominance to below 69%.

However, will the rally in Bitcoin and the altcoins continue or is it time for a few days of consolidation or correction? Let’s analyze the charts of the top-10 cryptocurrencies to find out.

BTC/USD

Bitcoin’s most recent leg of the uptrend had pushed the relative strength index (RSI) deep into the overbought territory, suggesting frenzied buying by the traders. Usually, such a phase is followed by a shakeout and that is what happened today.

BTC/USDT daily chart. Source: TradingView

The BTC/USD pair plummeted to an intraday low at $27,762.34, just below the 38.2% Fibonacci retracement level at $28,382.75. This sharp fall was aggressively purchased by the bulls as seen from the long tail on the day’s
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