Bitcoin Pullback Seen Testing Rally After 27% Monthly Gain
Summary
- Bitcoin (BTC) entered overbought territory after rising about 27% over the past month, suggesting a correction may be needed.
- If the decline deepens, the $67,000 to $70,000 range could serve as support.
- Sideways trading between $75,000 and $83,000 could help strengthen the market’s base, while a move above $83,000 could open the door to a test of $100,000.
Forecast Trend Report by Period
Bitcoin’s next correction may test whether its recent rally can continue after the token climbed about 27% over the past month, according to an analysis. A period of sideways trading could also help the market build a base for further gains.
CoinDesk reported on Aug. 24 that Chris Sullivan, co-founder of Hyperion Decimus, said Bitcoin had entered overbought territory after its recent advance. A pullback may therefore be needed to gauge the strength of the trend.
The $67,000 to $70,000 range would serve as support if the decline deepens, Sullivan said.
Samir Kerbage, chief investment officer at Hashdex, said the $80,000 to $90,000 range tends to have very little trading volume. Sideways trading between $75,000 and $83,000 would help the market build a stronger base, he added.
A steady rise above $83,000 could open the way for a test of $100,000, Kerbage said.
Bitcoin was trading at $78,800 on Binance’s USDT market as of 5:36 a.m. on Aug. 25, up 1.79% from a day earlier.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.