Bitcoin Poised for a Pullback, Says Analyst

Bitcoin crossed the $8,000 barrier on Tuesday, causing Bitcoin bulls to rejoice, but also Bitcoin bears to serve warning that the price move is only a precursor to a pullback.

“Given that it has trended down so sharply since May, I wouldn’t want to get too greedy,” said Newton Advisor founder and analyst Mark Newton. “Looking at cycles near term, this doesn’t mean it will go back to its highs right away.”

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Analysts at market strategy and sector research firm Fundstrat are specifically looking at how Bitcoin’s price responds in relation to its 15-day moving average, which could signal how the cryptocurrency responds in the long term. According to the analysts, the short-term indicators like the 15-day moving average are overbought, signaling a pullback is ready to occur.

After reaching as high as $8,404.57 on Tuesday behind a tailwind of positive news from institutional investor interest, the leading cryptocurrency has fallen to a current price of $8,089.71 as of 3:40 p.m. ET. Bitcoin fell below the $6,000 mark near the end of June, but has rallied about 38% since.