Analyst Gary Savage claims that Bitcoin, which is the biggest cryptocurrency by market capitalization, has seen a “false breakout”.
Market players should have been more cautious, according to Savage, because cryptocurrency miners have been “diverging badly”.
Is this time really different?
The primary bullish story supporting the largest cryptocurrency has been the astounding performance of several Bitcoin exchange-traded funds that have been introduced by significant organisations like Fidelity and BlackRock. Excessive excitement fueled by expanding institutional acceptance drove the price of the top coin to reach a new lifetime high of $73,737 last week.
Having said that, the expert cautions that things might not be any different this time. “Human nature being what it is we saw lots of people trying to rationalise why this time was different and it didn’t matter,” he stated.
“Just before the peak, I observed the similar behaviour with uranium. I see this a lot with great gold miners,” he continued.
He said that mining businesses should have been alerted when they diverged in the latter part of the bullish cycle.
He reiterated his pessimism after seeing a Bitcoin bull and said that individuals often become trapped at the pinnacle of bubbles.
Bulls and bears square off
Since breaking beyond the $65,000 barrier, Julio Moreno, head of research at CryptoQuant, claims that Bitcoin has been in an excessively bullish trend.
According to U.Today, even after the market as a whole and the leading cryptocurrency, Bitcoin, saw a significant correction, “extreme greed” continues to drive the market.
Gold bug After Bitcoin’s latest drop, Peter Schiff celebrated his success and said the cryptocurrency will soon make a harsh bearish disclosure.
Meanwhile, proponents of Bitcoin continue to mostly maintain their defiance, viewing the most recent price dip as little more than a minor setback.
This is what proponent of Bitcoin Joe Carlasare, a business attorney, called a “garden variety correction.”
