Analysts say consolidation could strengthen bitcoin’s rally, while thin trading above $80,000 may set up sharper price moves.
Bitcoin’s BTC$77,382.48 attempt at $80,000 has traders looking at higher targets, but analysts say what happens during the next pullback may be the real test of the rally’s strength.
The cryptocurrency has been flirting with the $80,000 mark for the past day, a move that follows a sharp rebound over the past week and has left bitcoin up about 27% over the past month.
Chris Sullivan of Hyperion Decimus said the break above key moving averages, rising volume and improved market breadth point to a possible change in trend. But the rally has also left bitcoin overbought, he said, making a pullback necessary to test the strength of the move.
Sullivan is watching the $67,000-$70,000 range as support if the retreat becomes more pronounced. He also warned that previous crypto bear markets have produced sharp short-covering rallies that were later erased.
Ryan Lee, chief analyst at Bitget Research, expects bitcoin to trade between $74,000 and $81,000 in the near term. A move back toward $75,000-$76,000 would fit with traders taking profits after the recent surge, he said.
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