Bitcoin (BTC) has been on something of a tear as of late. You know that, of course, but the strength of this move shouldn’t be understated. In the past six weeks, the crypto asset has moved from $4,200 to $8,300 — a growth of nearly 100% — while altcoins have also seen lofty gains.
Yet, throughout this entire swing to the upside, there have been analysts incessantly calling for a correction, looking to charts to accentuate that Bitcoin rallying here is uncalled for. The technicals would agree. On-chain data shows, however, that BTC is still looking strong, and could continue even higher, barring a bad news event or another bearish catalyst of a similar caliber.
Related Reading: Study: Despite Perceived Riskiness, Bitcoin Has a Higher Risk-Return Ratio Than Most Traditional Assets
Analysts Call For A Bitcoin Correction
Bitcoin’s monumental surge over the past couple of months has caught traders with their pants down, there’s no doubt about it. Almost no one expected for the asset to pass $6,000, let alone $8,000 in early-2019. Yet here we are, sitting above a level that was a quixotic dream just months ago. Some now claim that it is a perfect time for the asset to retrace, however.
As NewsBTC reported previously, the last time Bitcoin’s chart looked as it did now, a strong pullback ensued. Analyst Josh Rager recently pointed out that during 2015’s recovery out of a brutal bear market, which was much like the one seen in 2018, BTC bottomed around $200, accumulated around $300 for months, went parabolic to tap $500, and then saw a 40% pullback. What’s more, the three-day Super Guppy, a key long-term trend indicator, didn’t signal a “buy” (green) until after the pullback.
$BTC – 3D chart Super Guppy
Amazing similarity between the last bear market prior to uptrend
Bitcoin had a similar parabolic push out of accumulation, followed by a pullback and uptrend
Watching for a potential pullback where I'll add more to the stack pic.twitter.com/JABErMhlMq