Bitcoin Seen Near Short-Term Peak, With Correction Risk to $51,336

Bitcoin has entered a short-term topping zone, raising the risk of a price correction over the prospect of further gains, according to CryptoQuant.

In a Quicktake note published on August 10, CryptoQuant analyst STA Solutions wrote that Bitcoin appears to be in a short-lived rebound phase that typically emerges before a broader decline in a bear market comes to an end.

The analyst identified $62,541 to $67,894 as the main range for the current rebound. A more specific topping zone was set at $66,317 to $68,965. If the rebound extends, Bitcoin could still rise toward $70,000.

Technical indicators show the uptrend is losing momentum. While Bitcoin has been making higher highs, the moving average convergence divergence, or MACD, has been making lower highs, creating a clear bearish divergence.

The relative strength index, or RSI, has also entered overbought territory. Trading volume has continued to decline over the past six weeks of the rebound, another sign that buying momentum is weakening.

The next downside target is $51,336, about 21% below the current price. If Bitcoin first rebounds to $70,000 and then declines, the correction could widen to about 26%.

"There is still room for further gains, but the risks are greater at this point," the analyst said. "Because the trend lacks strength, the upward move could break down at any time."

The analyst added that investors should refrain from making large purchases for now, and that a more favorable entry point could emerge near $51,000.