Over the past month, Bitcoin {{BTC}} has reached new highs, with every decline rapidly absorbed. However, analysts have cautioned that the largest crypto may be entering a cooling period.
On Wednesday, Swissblock noted that bitcoin nearly quadrupled from $38,000 in late January without any notable pullbacks, suggesting a cooling period. Nothing rallies straight. A Telegram post from Swissblock analysts claimed no BTC. "A counter move seems to be near."
The 4-hour chart's negative bearish divergence between bitcoin's price rising but RSI falling foreshadowed lower prices, according to Swissblock analysts. The popular momentum indicator RSI evaluates an asset's price fluctuations' speed and size.
Swissblock analyst Henrik Zeberg's chart suggests a pullback in the coming days. Overall, falling prices will represent a short setback before the upswing rises to new highs.
Tuesday, crypto investment services business Matrixport predicted bitcoin's ascent will run out of fuel and consolidate. "This bull market still has legs, but the divergence between a declining RSI and still high bitcoin prices could signal that BTC needs to consolidate before rallying again," Matrixport stated.
Since crypto uptrends generally conclude with a profit shift from large-cap cryptos to riskier tokens, rising meme coin prices could herald a pullback. For instance, Pepe Coin's impressive climb in May led to a 15% drop in bitcoin's price the following month.
Over the past 24 hours, BTC traded above $73,000, up 2.6%. Meanwhile, the broad-market Coindesk 20 Index (CD20) rose 4%.
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