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Earlier today, the price of Bitcoin reached an intraday high of $98,481 before paring some gains.
Bulls are persistently trying to reclaim $100,000 after recovering from a sharp drop to the $91,000 level on Dec. 30.
DonAlt, a popular pseudonymous trader with nearly 650,000 followers on the X social media network, recently noted that Bitcoin had “an excellent” week. However, he also cautioned traders that the cryptocurrency had approached a rather “dangerous level.” “Break it and we’ll send everything. I’d like to see it broken before getting too euphoric though,” he said.
As reported by U.Today, some analysts also warned traders about Bitcoins’ weakening momentum based on the diminishing trading volume. Bitcoin would need a high volume for the bulls to pull off another major rally.
Bitcoin peaked at $108,364 on Dec. 17 on the Bitstamp exchange before seeing a 16% correction.
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While corrections of this size are considered to be normal during a bull market, they still raise some concerns about the possibility of a sharp trend reversal.
Bitcoin bulls suffered a significant blow after the U.S. Federal Reserve adopted a more hawkish tone and indicated that it would implement fewer rate cuts.
Moreover, the leading cryptocurrency recorded the “shooting star” candlestick on its monthly chart, which can be interpreted as a bearish sign for bulls. Such candles were previously followed by major price corrections.
Yet, despite some possible bearish headwinds, Bitcoin is vastly expected to outperform this year by various pundits. For instance, Anthony Scaramucci of SkyBridge Capital has predicted that it could surge to as high as $250,000 in 2025.
