While Bitcoin is paving the way for $100,000 with the rally it has experienced in recent days, analysts generally predict that $100,000 will come soon.
However, not every analyst thinks the same and states that they are not optimistic about the Bitcoin price as there are still concerns about the short term.
At this point, analysts claimed that Bitcoin was in a high volatility phase and was facing a potential retest of the previous $69,000 peak.
Speaking to Coindesk, SOFA senior manager Augustine Fan said that Bitcoin’s rally has entered a more volatile phase.
Noting that Bitcoin’s growing dominance is similar to the mega-cap trend in the S&P 500, Fan stated that this situation in BTC could create challenges for the broader crypto market.
Fan also noted the risk of the exuberant market sentiment creating a potential top for Bitcoin and cryptocurrencies, saying that this pattern in the S&P 500 shows a rapid price increase followed by an equally rapid decline, and warned investors of a sharp and sudden decline.
Market analyst Omkar Godbole similarly warned investors about a possible sharp decline, arguing that the Bitcoin price could peak at current levels and a breakout could occur.
According to the analyst, if there is a breakout in price, Bitcoin could retest its old ATH around $69,000, with the downward wick potentially dropping to $60,000.
WeFi co-founder Maksym Sakharov also shared a similar view, saying, “The upward trend in Bitcoin has slowed down since it crossed $90,000. The fact that the US Federal Reserve is no longer in a hurry to cut interest rates has forced investors to reconsider their bets on Bitcoin. If the Fed continues to take a somewhat aggressive stance on interest rate cuts, Bitcoin’s appeal may decrease, which will negatively affect the price.”
*This is not investment advice.