Bitcoin to face temporary pullback? Analytical firm predicts BTC to drop to $58,000

The analyst from the digital asset analysis company Swissblock stated that no asset will continue to rise in a straight line, including Bitcoin.

Swissblock: Bitcoin to Face Temporary Pullback

According to a report quoted by CoinDesk from Swissblock, the price of Bitcoin has almost doubled since the end of January, reaching $38,000, with no significant pullback, indicating a correction period may be imminent.

Analysts at Swissblock stated:

No asset continues to rise in a straight line, and neither does Bitcoin.

Swissblock's forecast is based on the 4-hour RSI technical indicator for Bitcoin, which suggests a minor increase in Bitcoin's price, but with RSI continuously declining, forming a bearish divergence, signaling a potential price drop.

Analyst Henrik Zeberg believes the pullback could occur as soon as in the coming days, but in a larger cycle perspective, the pullback will only be temporary.

He expects Bitcoin to drop to $58,000 to $59,000 in the next step, a 20% decrease from the current price, but it will continue to hit new historical highs afterwards.

Is Meme Coin a Doomsday Tank?

Matrixport also mentioned on the 12th based on the RSI indicator that, despite the price having support, the sinking RSI and divergence from Bitcoin's price may indicate that Bitcoin needs consolidation before rebounding.

We have been bullish on #Bitcoin since the end of January, but the risk-reward analysis favors a period of #consolidation. This bull market still has legs, but the divergence between a declining RSI and still high Bitcoin prices could signal that Bitcoin needs to consolidate… pic.twitter.com/epn4SWImYO

— Matrixport (@realMatrixport) March 12, 2024

Lastly, the frenzy of meme coins may also indicate a pullback signal, as CoinDesk points out that investors' profits shift from the cryptocurrency market to high-risk, small-cap tokens in the final stages of an uptrend.

For example, Bitcoin reached a phase high of $31,043 in April last year, followed by PEPE hitting its historical high on May 6, and Bitcoin then dropping to $24,791 on June 14, before starting another uptrend.