In the ever-evolving landscape of cryptocurrency, a prominent trader expresses bullish sentiments regarding the price trajectory of Bitcoin, foreseeing potential new all-time highs.
However, a note of caution accompanies this optimism, as the trader, known as CrediBull Crypto, warns of a looming and substantial downturn for the leading digital asset.
Bitcoin Analyst Warns Of Correction
CrediBull underlines the high probability of a significant correction following notable surges, drawing parallels to Newton’s third law, asserting that every action results in an equal and opposite reaction—a principle he believes extends to the dynamics of financial markets.
With a significant following of over 361,000 on the social media platform X, CrediBull sheds light on Bitcoin’s historical patterns. He highlights that since Bitcoin’s inception, the cryptocurrency has weathered three to four instances of sudden downturns following parabolic upswings.
“For every action, there is an equal and opposite reaction.”
This applies to markets too.
If you think we are going to have a parabolic rally to 100k+ in a relatively short period of time then you must accept that there will be an equally aggressive correction that follows.…
— CrediBULL Crypto (@CredibleCrypto) December 27, 2023
As of the latest market update, Bitcoin is valued at $42,650, indicating a 1.0% decrease in the last 24 hours and a 2.2% decline over the past week, according to data from Coingecko.
While Bitcoin has recently surged to $43,500, marking a considerable victory for investors who entered the market when prices were around $16,500 at the beginning of the year, it still grapples with a nearly 40% deficit from its all-time high of nearly $69,000 in November 2021.
CrediBull Crypto attributes the occurrence of parabolic rallies to a volatile mix of greed and irrational exuberance, emphatically stating that these sentiments set the stage for potential market downturns.Bitcoin currently trading at $42,791 territory today. Chart: TradingView.com
Anticipating Bitcoin’s ascent to new peaks followed by an inevitable decline, he provides a cautious perspective on the associated risks, urging market participants to be mindful of the inherent volatility.
Another Expert Anticipates Volatility
Shifting the focus, another luminary in the crypto space, DonAlt, renowned for accurately predicting the early-year crypto rally, shares insights on Bitcoin’s future amidst widespread anticipation for the potential approval of spot market BTC exchange-traded funds (ETFs).
DonAlt suggests that the approval of a spot-based BTC ETF could introduce increased volatility into Bitcoin, potentially leading to a short-lived rally post-announcement followed by a notable correction in the ensuing days.
With a YouTube channel boasting over 55,000 subscribers, DonAlt envisions scenarios where positive developments, including the much-awaited Bitcoin halving and SEC approval of ETFs, could provide momentum to Bitcoin’s price.
However, he maintains a level of skepticism, labeling these events as potential “sell-the-news” occasions. Delving into possible price movements, DonAlt suggests a potential spike to $45,000 or higher post-ETF approval, followed by a significant weekly correction, a cycle he believes will eventually be absorbed as the market trends upward.
In navigating the volatile terrain of cryptocurrency, both Credible Crypto and DonAlt emphasize the importance of staying vigilant, recognizing the potential for both euphoric highs and consequential corrections in this dynamic and ever-changing market.
Investors are reminded to exercise caution and strategic thinking in the face of such market dynamics.
Featured image from Shutterstock