Bitcoin prices fell below $70,000 during Wednesday's trading session, however, the markets have not reached an overbought state yet, according to analyst James Cheek.
In his post to his followers on the
In December 2020, Bitcoin prices rose to an all-time high of $20,000, and stabilized around that level for two weeks before rising to a new peak of $30,000 by New Year's Day.
In the current session, Bitcoin prices have risen close to their peak of $73,738 in mid-March, but have encountered resistance there, indicating positive momentum and the possibility of entering a price discovery zone.
Only seven days in history have seen a close above the $71,000 level, which shows that we are breathing new air here.
He pointed out that achieving a new highest level is rarely successful the first time, stressing that the period of accumulation and repeated attempts is normal.
The network value to transactions (NVT) ratio indicates that Bitcoin's price is in line with the throughput of transactions across the network, similar to conditions in late 2020.
In addition, the short-term SOPR indicator shows that the market is excited but not euphoric, indicating a potential upside.
Analyst Reckitt Capital predicted that a weekly candle close above $71,500 would likely lead to a breakout from the reconsolidation range.
However, Bitcoin prices have fallen to $69,782 at the time of writing this article.
He explained that history suggests that Bitcoin may consolidate within this regrouping range for several more weeks.
