Bitcoin has paused around the $8.8K-$9K position. This comes after 2 days of huge jumps that saw the digital asset reach highs of $9.4K from lows of $7.8K. This marked a more than $1K jump in less than 24 hours. With such a huge rally, investors expect a retracement. This commonly happens after prices have stalled and momentum has slowed.
Historical figures would suggest that the latest surge could be followed by a dramatic fall before the rally can continue. On its way to $9.4K, Bitcoin passed some key resistances without slowing or pulling back in its typical fashion. And with this happening in a couple of hours, it means that a correction is overdue. Investors taking profit at current highs could lead to a massive pullback unless the upward trajectory can be maintained.
Analyst Timothy Peterson warns that after a $1,000 intraday jump, investors can expect a 38% pullback. He notes that Bitcoin adding more than $1,000 in a single day has only happened 14 times in history.
In these times, Bitcoin fell by 5% in the next seven days, around 20% in the next 30 days and 38% in the next 90 days.
Although Bitcoin looks set to get back above $9K, by not reaching its recent high of $9.4K, its upward trajectory could halt, followed by a sharp decline in search of lower support.
Halving Makes Case Different
Bitcoin has proven time after time that history cannot be trusted to predict its price movement. Because of this, we can expect a different pattern once again following this single day $1,000 jump. This is especially as we are going into a halving. The event is now ten days away and many in the crypto community are predicting an all-time high with prices already gaining momentum.
Most analysts believe that this week’s gains are just the beginning and heading into the halving, Bitcoin will reach around $10K. This will be the bulls’ destination early next week with ATHs being the target by the start of the halving week.