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.”
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.