As Bitcoin (BTC) approaches the $80,000 milestone, market experts are sounding alarms about a possible sharp decline in the cryptocurrency's value. The recent surge, which saw BTC gain nearly $2,000 in a single hour on November 10, has raised eyebrows among seasoned traders and analysts.
Weekend Rally Sparks Skepticism
Bitcoin's price jumped by almost 3% on Sunday, continuing a pattern of weekend price spikes. However, this sudden increase has not been met with universal optimism. WhalePanda, a prominent voice in the crypto community, cautioned that such weekend surges often fully retrace once regular trading resumes.
Keith Allen, co-founder of Material Indicators, emphasized the necessity of sustained pullbacks during uptrends. He suggested that the weekend gains might be short-lived, urging investors to remain cautious.
Mechanics Behind the Rally
Trader Skew offered insights into the possible drivers of the recent price surge. Large-volume traders may be using "spoof" ask orders to artificially lower prices, allowing them to purchase BTC at discounted rates. This strategy could be aimed at creating price momentum and attracting algorithmic buyers, potentially pushing Bitcoin towards an unofficial $80,000 target.
Warnings of a Major Correction
Despite Bitcoin's impressive 15% weekly gain, some analysts are predicting a significant reversal. Credible Crypto, a well-known analyst, reiterated his forecast of a sharp correction, with a potential dip below $50,000. He warned that both altcoin and BTC prices might peak sooner than expected, signaling an imminent "major leg down."
Key Level for Continued Growth
For Bitcoin to enter a "parabolic" growth phase, bulls need to secure a weekly close above $71,500. Analysts view this level as critical for sustained upward movement. However, the current volatile market conditions and low liquidity pose significant risks to Bitcoin's price discovery phase.
As Bitcoin teeters on the brink of $80,000, investors and traders alike are closely watching market indicators. While some see potential for further growth, others caution that a substantial correction may be on the horizon. In this climate of uncertainty, market participants are advised to approach with caution and remain vigilant to rapid price movements.