While Bitcoin, the leading cryptocurrency, broke record after record, it crossed the level of $ 58,000 and then $ 59,000 for the first time since December 21.
While investors and analysts in general expected the BTC price to exceed the previous ATH of $69,000 in March, driven by the spot Bitcoin ETF and the halving event, QCP Capital analysts claimed that this rally was not sustainable.
At this point, QCP Capital analysts pointed out the abundance of over-leveraged positions in Bitcoin and stated that these highly leveraged positions pose a risk for BTC and said that there may be a correction towards the $ 50,000 level in the coming days.
Warning investors about this correction, analysts said that there are two possible scenarios for BTC.
According to the first scenario, Bitcoin may experience a correction to $ 50,000, and according to the second scenario, BTC may continue its upward trend with strong ETF inflows and the upcoming halving effect.
“On the one hand, this rally may be limited due to speculative excitement, unsustainable funding rates, and in the near term it is possible that we will see a pullback in BTC to $50,000 levels due to overleveraged positions.
“On the other hand, the uptrend in Bitcoin may remain intact due to the continuation of strong spot ETF inflows and the upcoming halving effect.”
Finally, analysts pointed out that despite the expectation of a possible correction in Bitcoin, the general outlook in BTC is positive.
*This is not investment advice.