Key point:
Bitcoin’s market structure is still bullish, even as a phase of profit taking and consolidation sets in.
Bitcoin (BTC) remains pinned below the breakout level of $109,588, indicating that the bears are fiercely defending the level. Bitfinex analysts said in a market note that profit-taking generally follows after Bitcoin hits a new all-time high after a sharp rally. The report added that a mild retracement or consolidation would be healthy and lay the foundation for the next leg higher.
Glassnode had a similar view. In its latest report, the market intelligence company said that the relative strength indicator (RSI) has weakened, suggesting easing momentum, which could lead to “a potential pause or reversal in the recent bullish trend.”
Crypto market data daily view. Source: Coin360
Even if a correction happens, dips are likely to be purchased. Material Indicators co-founder Keith Alan