If one thing is true about the cryptocurrency market, it's that greed is the enemy.
Speaking of greed, we should mention this metric:
According to the crypto market's fear and greed index, we are currently experiencing massive amounts of investor greed, indicating that there might be an incoming profit-taking spree that ushers in the pre-halving correction.
In this section, we will be going over a few tweets from analysts, warning against putting all of one's eggs in one basket and neglecting the simple rules of strategic investment.
According to Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, the Bitcoin rally cannot continue for much longer.
The analyst cited things like how the Bitcoin funding rates are about 9 times larger than normal, how the memecoins are rallying strongly, and how the ETF flows seem to have hit a brick wall.
This is without mentioning how Bitcoin is showing reluctance to cross the $69,000 all-time high, which is currently the strongest resistance on the Bitcoin chart at the moment.
"Froth can remain for 2-3 weeks before a flush." the analyst warned in a later tweet, "That means mid-late March potentially,".
Edwards went further to state that he remains bullish on Bitcoin's prospects. However, he maintains that "Price can always go up, it's just risk mgmt and probabilities."
Edwards thinks that "The risk profile here is very different (worse) to when Bitcoin was $16K, for example. Simply something to keep in mind for portfolio mgmt,"
As we mentioned before, the $69,000 resistance is one of the strongest resistances at the moment, on Bitcoin.
Analyst, Ali even says that the TD Sequential indicator is showing signs of a sell signal for Bitcoin, right around this price level.
The analyst suggested that Bitcoin might decline from here, by around 4.7% – 1.5% from a historical standpoint.
However, he also mentions that this might be something the short sellers need to keep in mind.
Another analyst, Emily echoed Ali's outlook in a separate tweet, stating that Bitcoin might be about to break through $69,000 for the first time since 2021, but that if a decline occurs around here, it might present a great opportunity to buy some more Bitcoin.
This comes amid predictions of a decline to $55,000 from Michael Novogratz, the CEO of Galaxy Digital in a recent interview with Bloomberg.
The $69,000 zone really does come into view, when we zoom into the Bitcoin charts.
We can see from the chart above, that the bears are holding the line against the bulls, and we might be seeing some consolidation underneath this $69,000 price level.
Keep in mind that the RSI on the daily chart has been showing overbought conditions for nearly a week now, and the 25-day EMA, interestingly, sits at around $56,000 or thereabouts.
This is no surefire indicator that BTC will decline to this price level should Bitcoin correct itself.
However, investors should note that as long as the $69,000 zone remains unbroken, this decline to $56,000 remains fully in view.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.