Bitcoin Faces Risk of Pullback to $51,336 After Short-Term Peak, CryptoQuant Says
Summary
- A CryptoQuant analyst at STA Solutions said Bitcoin has entered a short-term rebound phase and is now in a short-term topping zone.
- The analyst identified the rebound range at $62,541 to $67,894 and the expected topping zone at $66,317 to $68,965, while leaving open the possibility of a move to $70,000.
- The analyst set the next downside target at $51,336 and added that investors should refrain from large purchases for now and look for a possible entry opportunity near $51,000.
Forecast Trend Report by Period
Bitcoin has entered a short-term topping phase, raising the risk of a price correction over further gains, according to a CryptoQuant Quicktake analysis published on Aug. 10.
An analyst at STA Solutions on the crypto analytics platform wrote that Bitcoin appears to be in a short-lived rebound typically seen before a broader decline in a bear market runs its course.
The analyst identified $62,541 to $67,894 as the main rebound range and $66,317 to $68,965 as a more specific topping zone. If the rebound extends, Bitcoin could still rise toward $70,000.
Technical indicators suggest the uptrend is losing strength. While Bitcoin has been making higher highs, peaks in the moving average convergence divergence, or MACD, have been falling, showing a clear bearish divergence. That means prices are rising even as upside momentum weakens.
The relative strength index, or RSI, has also entered overbought territory. Trading volume has continued to decline during the past six weeks of the rebound, another sign that buying pressure 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 deepen to about 26%, the analysis said.
Bitcoin may still have room to rise, but the risks are greater at this stage, the analyst wrote. With trend strength weakening, the advance could break down at any time. The analyst added that investors should refrain from large purchases for now and that a more attractive entry point could emerge near $51,000.
