As the price goes vertical at$28,000, an increasing number of analysts are beginning to anticipate a correction.
As cryptoslate.com reported, Alex Krüger, an economist tracking the crypto space, says that Bitcoin and the rest of the crypto market are “flashing orange alerts”: “Everything in $BTC is now flashing orange alerts. IMO new crypto trades should be handled as short-term entries. I added some $ETH and a few alts yesterday for short-term moves. If I happen to be wrong and this flies, great. If not, it was worth the punt.”
Shortly afterwards, he added that while he considers there might be some legs of altcoins here, the crypto industry is “late in the move.” Another well-known analyst, “Bitcoin Jack,” has made a similar statement that a peak is likely to be near the market soon.
The historically accurate trader says that the current Bitcoin price for BTC is almost three times the “average on-chain price.” When the price closed at $20,000, the last time this metric was this high was in 2017. In addition, historical macro peaks have been marked by prior instances of this metric rallying to the 2.8-3.2 region.
What makes things a little confusing is that BTC has yet to experience a serious drawdown, unlike past Bitcoin bull markets. Instead, as investors attempt to continue adding capital to their positions despite a rising expense, any strong dip of 5-10 percent is bought up quickly.
The heavy purchasing momentum is seen by many as an indication of institutional interest in the leading crypto-currency.