Two weeks ago, few investors would have expected Bitcoin (BTC) price to rally any higher than $20,000. In fact, most had forecast a $30,000 BTC price by mid-2022 or late 2023 at best.
This means that many holders were likely caught by surprise as BTC price surged to $34,800 just 17 days after crossing the $20,000 mark.
Generally, analysts expect a sharp correction to follow Bitcoin’s 150% gain since November, but currently, there are no fundamental indicators that support this point of view.
BTC/USD 4-hour chart. Source: TradingView
Despite the recent bullish euphoria surrouning Bitcoin’s price action, the digital asset faced a significant drop as the price fell by $5,600 in 3 hours. Over $1.2 billion in liquidations followed that red candle, and typically this sort of move would raise alarm and lead analysts to forecast a potential trend reversal.
Each time Bitcoin makes a new high, investors expect some form of correction. Despite failing to break through the $34,500