Credible Crypto, a well-known cryptocurrency analyst recognized for accurate predictions, has indicated that Bitcoin (BTC) is on the path to reaching an all-time high. However, the analyst also cautions that this surge could be followed by a significant correction.
Drawing from historical patterns, Credible Crypto suggests that every parabolic rally in Bitcoin’s history has been succeeded by a sharp decline. The analyst believes that if the market expects a parabolic rally to over $100,000 in a short period, it should also brace for an equally aggressive correction.
According to Credible Crypto, such parabolic rallies are driven by greed and irrational exuberance, which are precisely the factors that set the market up for devastating crashes. These elements go hand in hand, implying that one cannot occur without the other.
The analyst forecasts that Bitcoin will reach its peak before the anticipated crash, influenced by potential catalysts such as the approval of a spot Bitcoin ETF and the effect of the block reward halving in April 2024.
At the time of the report, Bitcoin was trading at $42,474, down 1.04% over the last 24 hours. Despite a 160% increase since the beginning of the year, BTC’s price remains 37% below its November 2021 all-time high of around $69,000.
Data from the crypto data and price platform CoinMarketCap shows that BTC has risen by 2.72% over the last week and 10.97% over the past month.