Bitcoin’s parabolic ascent looks unstoppable. Recently, every correction has been seen as an opportunity to buy heavily on dips. This week, the number one cryptocurrency is up by as much as 15 percent and it looks like bulls are gunning for the 2019 high of $13,868.44.
The atmosphere is so bullish that CryptoTwitter is starting to feel euphoric. One cryptocurrency trader and investor that goes by the name Josh Rager shared an image of a majestic bull with a caption “$13k $BTC” to illustrate the strength of the uptrend.
While bulls are celebrating, an examination of bitcoin in both the short-term and long-term timeframe reveals that bulls are running out of steam. Indicators look overheated, which makes a retracement down to $9,000 a very likely scenario.
The first cryptocurrency soared from $4,000 levels in March 2019 to close to $14,000 last month. That’s an astronomical ascent of around 245 percent in three months. The steep rise came with very little correction. Without a significant retracement, the long-term health of the uptrend is at risk.
This risk may come into play in the next few days as the market shows signs of bullish exhaustion. However, the failure to breach or even touch the 2019 high of $13,868.44 may likely ignite a waterfall event. Sellers would realize that the top is in and they would dump positions in a hurry. If this happens, bitcoin could be trading around $9,000 levels.
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