Bitcoin Price Could Crash Post 40% Rally: Should You Sell Now?

Bitcoin’s price has been on an impressive streak, surging more than 40% this month alone, and climbing a staggering 120% year-to-date. From its lows in 2022, the cryptocurrency has skyrocketed nearly 500%, leaving many investors overjoyed.

With the recently concluded U.S. election, rising institutional interest—including major players like BlackRock—and a market buzzing with optimism, all eyes are on Bitcoin’s next move. Can the king sustain its rally?

Let’s dive into the video analysis by Altcoin Daily on BTC’s current market status and what the experts think.

Could Bitcoin’s Bullish Trend Keep Going?

The analysis suggests Bitcoin’s rally might just be getting started, with no major technical resistance ahead. Some analysts, including VanEck’s head of digital asset research, predict that Bitcoin could hit new all-time highs over the next two quarters. They believe that with strong government backing, more institutional interest, and the possibility of Bitcoin becoming a reserve asset, Bitcoin could rise to $180,000 by 2025.

That would be a huge 1,000% return from the bottom of this cycle—a smaller percentage than previous cycles, but still impressive.

What’s Driving BTC?

Several key factors are fueling this optimism. These include growing government support, more favorable regulations, and a rise in institutional investment. With speculation that Gary Gensler could step down as SEC Chair and an increase in pro-crypto sentiment among U.S. leaders, many believe more capital could flow into Bitcoin, potentially pushing its price even higher.

Are We Heading for a Market Correction?

Despite the excitement, some experts warn that a pullback could be on the horizon. The market shows signs of euphoria, which often signals a correction is near. The Crypto Fear and Greed Index is at 88, showing ‘Extreme Greed’ in the market. Historically, when greed reaches these levels, the market tends to correct sharply. For instance, a similar spike earlier this year caused Bitcoin’s price to drop by 18% in just three weeks.

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Prepare for the Volatility

While Bitcoin’s rally has been strong, experts warn that volatility is still a major factor. Short-term corrections of 6-10% are likely. Some skeptics even believe that the rally might have already reached its peak.

Key indicators, like Google searches for Bitcoin and the popularity of the Coinbase app, are still far below the levels seen during the 2017 bull run, suggesting that retail interest isn’t as high as in past cycles. With the market becoming more speculative, the chance of a temporary crash can’t be ignored.

So, what’s next for Bitcoin? Will the rally continue, or is a market correction on the way? The debate continues. Let’s wait and watch.