{"id":156352,"date":"2021-01-17T00:30:00","date_gmt":"2021-01-16T21:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/traders-say-bitcoin-price-needed-pullback-to-maintain-bullish-momentum\/"},"modified":"2021-01-17T00:30:00","modified_gmt":"2021-01-16T21:30:00","slug":"traders-say-bitcoin-price-needed-pullback-to-maintain-bullish-momentum","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/traders-say-bitcoin-price-needed-pullback-to-maintain-bullish-momentum\/","title":{"rendered":"# Traders say Bitcoin price \u2018needed pullback\u2019 to maintain bullish momentum"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a32931133e44\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a32931133e44\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/traders-say-bitcoin-price-needed-pullback-to-maintain-bullish-momentum\/#Popped_bubble_or_lower_support_retest\" >Popped bubble or lower support retest?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/traders-say-bitcoin-price-needed-pullback-to-maintain-bullish-momentum\/#BTC_bulls_arent_done_yet\" >BTC bulls aren\u2019t done yet<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Traders say Bitcoin price \u2018needed pullback\u2019 to maintain bullish momentum <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin\u2019s parabolic increase well above its previous all-time-high has many experiencing d\u00e9j\u00e0 vu from 2017 and a number of analysts are concerned the market is overdue for a sizable correction.\u00a0<\/p>\n<p>On Jan. 8 With Bitcoin (BTC) price reached a new all-time high at $41,940 and this week\u2019s 28% collapse to $31,076 had professional and retail investors afraid that a strong trend reversal was in the making. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/00d22697-0e3a-4572-bde9-eac91ffeaa01.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USDT 4-hour chart. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/chart\/IWVb7gIX\/\"><em>TradingView<\/em><\/a><\/figcaption><\/figure>\n<p>Bitcoin\u2019s historical data shows that rapid parabolic ascents are usually followed by equally catastrophic corrections like the one seen after the 2017 bull run. Because of this, the current market\u2019s similarities to the euphoric mania of 2017 to 2018 bull run have not gone unnoticed. <\/p>\n<p>Cane Island global macro investment manager Timothy Peterson recently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nsquaredcrypto\/status\/1349022063793729537\">pointed out<\/a> that:<\/p>\n<blockquote><p>\u201cBitcoin&#8217;s risk is <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaching 2017 levels. Investors that buy at this price can expect to lose 40% of their investment sometime in the future. However, the typical maximum drawdown is 30%, so this risk is only modestly elevated from the average.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/51ec1cee-1ced-4370-92f9-5de025afd459.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin risk based on current valuation levels. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nsquaredcrypto\/status\/1349022063793729537\/photo\/1\"><em>Twitter<\/em><\/a><\/figcaption><\/figure>\n<p>In a follow-up private conversation with Cointelegraph Peterson noted that there remains a short term bull case for Bitcoin stating: <\/p>\n<blockquote><p>\u201cFor bitcoin&#8217;s valuation to reach 2017 levels, it would have to be at least $80,000. There&#8217;s a small chance that would happen, and if it did, it would happen quickly. High prices have a tendency to move even higher.&#8221;<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Popped_bubble_or_lower_support_retest\"><\/span>Popped bubble or lower support retest?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are some telltale signs that Bitcoin\u2019s quick gains reflect a manic market on the verge of a correciton and the current bull versus bear debate centers around whether this week\u2019s volatility is a healthy pullback to test lower supports before the price initiates the next move higher. <\/p>\n<p>LookIntoBitcoin founder and Decentrader analyst Philip Swift recently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PositiveCrypto\/status\/1349405554939203586\">made the case<\/a> that Bitcoin\u2019s recenet price action reflected a \u201cneeded pullback\/slowdown\u201d and he noted that several indicators were flashing red, indicating that the rate of BTC\u2019s price appreciation was reaching extremes. <\/p>\n<p>Swift said: <\/p>\n<blockquote><p>\u201cPrice has now pulled back below the x3 multiple where I expect it to stay for a while. As others have spoken about, price likely ran up to x3 (beyond x2) because we&#8217;ve had an earlier mania phase in the cycle vs last cycle with both retail+institutions buying.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/381025f3-8230-47b3-a72a-af441b3c33e0.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin Golden Ratio Multiplier. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PositiveCrypto\/status\/1349405823919910914\/photo\/1\"><em>Twitter<\/em><\/a><\/figcaption><\/figure>\n<p>Swift\u2019s analysis indicates that BTC is likely to trade sideways and slowly ascend in the near term but at a slower rate \u201cas some money\/profit rotates into altcoins.\u201d Recent price moves in altcoins, especially DeFi-related tokens indicate that this rotation might already be underway. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"BTC_bulls_arent_done_yet\"><\/span>BTC bulls aren\u2019t done yet<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While analysts and chart watchers are calling for Bitcoin to take a breather, bullish traders may have indicated that they have different plans. At multiple instances this week, bulls defended retest of lower support by buying into each dip and there is also the expectation that institutional inflow into BTC will resume now that Grayscale has re-opened its GBTC family of products. <\/p>\n<p>A look at the 30-day average daily sentiment score for Bitcoin shows that despite the pullback, the average score has only decreased slightly from recent highs and is well above the lows seen during previous downcycles. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/4d13cc63-34b6-412b-b78a-63a24929c30c.png\"><figcaption style=\"text-align: center;\"><em>Price vs. 30-day average sentiment score. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thetie.io\/\"><em>TheTIE<\/em><\/a><\/figcaption><\/figure>\n<p>While few know the exact course Bitcoin\u2019s price action will take this weekend, the strengthening fundamentals from a technical perspective, increased institutional inflow and positive announcements by government regulators suggest that the recent dips were nothing more than healthy corrections that were bound to occur before Bitcoin gears up to reach for a new all-time high.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/traders-say-bitcoin-price-needed-pullback-to-maintain-bullish-momentum\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Traders say Bitcoin price \u2018needed pullback\u2019 to maintain bullish momentum &#8221; Bitcoin\u2019s parabolic increase well above its previous all-time-high has many experiencing d\u00e9j\u00e0 vu from 2017 and a number of analysts are concerned the market is overdue for a sizable correction.\u00a0 On Jan. 8 With Bitcoin (BTC) price reached a new all-time high at&#8230;<\/p>\n","protected":false},"author":1,"featured_media":156353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/7cc17444-c8bb-4863-b857-7726f391040d.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74937,74863,74939,73785],"class_list":["post-156352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/156352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=156352"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/156352\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/156353"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=156352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=156352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=156352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}