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Several technical analysts were waiting for a minor retracement, with the price of bitcoin rising from $ 5,000 to $ 7,500 in a relatively short period of time, demonstrating a parabolic upward movement.
The price of bitcoin has declined more than 6% in the last 24 hours, slightly corrected (source: coinmarketcap.com).
Although the bitcoin technical indicators have portrayed oversold conditions after its strong recovery, the dynamism of the dominant cryptocurrency could allow the asset to maintain its positive trend in the near term.
Why a big retracement is unlikely for Bitcoin
Sending to CCN during an interview, a cryptocurrency operator known as "Satoshi Flipper" explained that it was reasonable to expect bitcoin to come back slightly short term on a move of $ 2,000 in less than a month.
The trader said that he had talked about a possible retracement of bitcoin, which would be beneficial for the asset, but that he did not see him falling into the $ 4,000 area, as some claim.
"I clearly talked about a healthy return from BTC, but I do not think it will be a drastic drop of 30% in the $ 4,000. Once we have formed a local summit, I think we will have at most 10%, then we will sit on the side, "said the trader.
On May 12, Bitcoin saw a 6% sale, from $ 7,500 to $ 7,000, and recovered slightly to $ 7,080. It is not certain that the full retracement of the asset is over, but after a slight correction, the trader added that the alternative market for cryptocurrency (altcoin) could rebound.
"That's when we will have a real season altcoin that everyone expects. On the immediate return, the altcoins will be a little successful, but when BTC settles on the side, the altcoins will bounce back a lot, "he said.
Alex Krüger, a global markets analyst, said he was not expecting a sharp correction from bitcoin, which has surpassed the $ 7,000 resistance level and has finally hit a new high for 2019 at $ 7,585.
The asset was the subject of a retracement, a short-term move perceived by many traders as a step backwards ideal for setting the necessary fundamentals for the next uptrend.
"Mental health reigned over BTC overnight, correcting 11% less. Today's move above $ 7,000 had begun to make many, including myself, fear a strong correction in the near future. Cognitive biases may affect us all, "says the analyst. m said.
With a relatively large retracement already in place, analysts generally do not expect a substantial drop in the price of bitcoin below the $ 6,000 mark.
Last time $ BTC was this overbought (RSI) on a daily chart was December 6, 2017, with a price of $ 13,700. At the time, a parabolic movement ensued.
– Alex Krüger (@krugermacro) May 11, 2019
However, it is important to note that prior to Sunday's bitcoin correction, the Relative Strength Index (RSI) exhibited oversold conditions.
Probable lateral movement?
With the verifiable "10 true" daily volumes of bitcoins over $ 1.8 billion and the growing interest in cryptocurrencies, an ideal move for BTC would be a gradual progression toward significant resistance levels.
Click here for a real-time bitcoin price chart.
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