After holding above $16,000 and pushing above $16,400, Bitcoin has faced a drop. The coin currently trades for $15,800, slightly below the aforementioned highs but still above key support levels.
Some analysts expect the market to consolidate further in the days ahead, potentially after one more leg higher.
Yet there are signs that the market is currently overvalued, or at least that bulls are too exuberant. Alternative.me’s custom Crypto Fear and Greed Index suggests that Bitcoin investors are currently “extremely greedy” from a sentiment standpoint, giving credence to the belief that a drop is likely.
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Bitcoin to Soon Move Even Higher
A historically accurate crypto analyst is signaling that one thrust higher is likely from here, then a consolidation.
The same trader that predicted Bitcoin would see a V-shaped reversal in March shared this chart below just recently. It indicates that Bitcoin is currently trading in a V-shaped reversal pattern that should result in BTC peaking at $18,200 in the days ahead. After that, the chart suggests BTC will face a strong drop toward $15,000, then consolidation from there.
This is in line with the sentiment shared by a number of other analysts, who say that Bitcoin is unlikely to be at a trend high due to the lack of “blow-off top.” A blow-off top is when an asset rapidly appreciates in a short period of time, then reverses dramatically lower as holders sell into the rally.
Chart of BTC's price action over the past few months with an analysis by crypto trader Bitcoin jack (@BTC_JackSparrow on Twitter). Source: BTCUSD from TradingView.com
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Faces Drop Under $16,000: What Analysts Think Is Next
