Analyst: Bitcoin market setting in a major top

2024-01-12 07:23:44

According to YouTube analyst Crypto Banter, the narrative around the Bitcoin ETF hype is starting to die down, ing investors to start taking profits.

As stated in the Jan. 12 video, spot Bitcoin ETFs traded at a total volume of $4.6 billion, with Grayscale (GBTC) taking the lead. However, the analyst reveals that in taking a closer look at the data, the GBTC sales were due to higher fees and the majority of “old Bitcoin” being locked up, meaning the data shows closer to zero new inflows that might result in a market scare and a sell-off.

At the same time, the analyst concludes the technical analysis and the fundamentals are in line right now, pointing to a candle chart to highlight some standard makings of a local top, with the CME Bitcoin Futures launch being one of the candles.

However, Crypto Banter concludes that the sentiment does not have the makings of a cycle top and certainly not the end of the bull run. However, in the interim, investors are cautioned to heed the very early signs of a pullback, as evidenced by Bitcoin’s (BTC) daily candle close.

Zooming out, the analyst shares that Bitcoin halving is still set to increase demand and price for the cryptocurrency, citing the 96-day countdown. When put on a longer time cycle, the analyst concludes that the little pullbacks in the market as part of the larger upward trend were, in fact, severe pullbacks of 40%.

While he doesn’t predict a 40% correction, one in the range of 20% to a maximum of 30% is possible.

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