Bitcoin Market Not ‘Top Heavy’ Yet But More Consolidation Expected: Analysts

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BTC prices have retreated back below $70,000 during Wednesday morning’s Asian trading session but markets are not overbought yet, according to analyst James Check.In early December 2020, BTC prices rose to reclaim its 2017 all-time high of $20,000. It consolidated around this level for a couple of weeks before surging to a new peak of $30,000 by New Year’s Day.

He added that “punching a convincing all-time-high is rarely successful on the first go” before stating that a period of “chopping wood” and a couple of significant attempts is very normal. Additionally, the short-term holder Spent Output Profit Ratio shows that the market is in an “enthusiastic” but not “euphoric” phase, indicating a potentially sustainable uptrend.

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