cryptopotato.com
CryptoCon, a popular technical analyst, highlights the potential for a Bitcoin cycle top, citing indicators such as the Directional Movement Index (DMI), which gauges an asset’s strength and direction while reducing potential false signals.
The analysts suggest that a cycle top could occur in two weeks or three months – around April and June this year.
More Pain to Come?
However, he notes that based on previous DMI signals, the final top has been reached twice in ten months. Therefore, a more likely timeframe for Bitcoin’s cycle top could be by December 2024.
The 2 Week Directional Movement Index tells us that a cycle top for #Bitcoin could be coming very soon, possibly within the next weeks to months.
This would be scheduled to be the first of 2 cycle tops, with a cross of 55.12.
The time it has taken to put in a first top after… pic.twitter.com/cjasD97PTZ
— CryptoCon (@CryptoCon_) March 13, 2024
CryptoCon’s analysis comes amid a new record of net inflows for spot Bitcoin ETFs. As CryptoPotato reported, the investment vehicles saw a high of $1.05 billion, up 56% from $673 million on Feb. 28th. The surge comes as Bitcoin’s price is gripped with greed, hitting a new all-time high above $73,000.]
However, the asset’s price headed south after the recent peak. As reported earlier, $BTC slumped by roughly six grand in hours, leaving millions in liquidations. There are also warning signs that more pain could follow soon.
Is A Correction Coming?
According to a Telegram update on Wednesday, Swissblock analysts said Bitcoin is on the verge of entering a cooling period after a meteoric rise over the past month.
A chart by Swissblok analyst and macro-economist Henrik Zeber shows that Bitcoin is facing a negative bearish divergence between $BTC’s price netting new all-time highs and a waning relative strength index (RSI).
“No moves without a counter-move. And a counter-move seems to be near.” Swissblock said in the Telegram update. “We see $BTC dropping to ~58-59K in its next move.” This is a 20% correction from current prices.
This foreshadows a price pullback as the RSI throws a waning momentum for Bitcoin. However, the analyst suggested that “the top is not in” – meaning that a 20% decline in $BTC might pave the way for the cycle top CryptoCon referred to.