In a pivotal move, renowned crypto analyst Ali has set the crypto community abuzz with a bold prediction regarding the current state of the cryptocurrency market. In a recent post on X (formerly Twitter), Ali utilized the Wall Street Cheat Sheet market cycle analogy to paint a picture of what he deems a “disbelief” rally.
This particular phase, often dubbed the “sucker’s rally,” is the initial sustained upswing that signals a departure from the clutches of a classic bear market. According to Ali, this optimistic market sentiment will likely be met with skepticism, leading to an imminent correction and, in turn, providing ammunition for the bears to declare, “I told you so.”
Analyst Forecasts Brief Bitcoin Correction Before Strong Bullish Rally
However, analyst is not sounding the alarm for a prolonged downturn. He anticipates that the impending Bitcoin price correction will be a brief interlude before a substantial bullish surge takes center stage. Referencing the Wall Street Cheat Sheet, the “disbelief” rally bridges the “Depression” phase and the forthcoming optimism. Traditionally, this stage is perceived as precarious, with historical data suggesting that such attempted rallies often falter.
Source: Research Gate
It’s important to understand that the “disbelief” rally is a crucial step toward the market’s recovery from a bear market. According to the narrative of the Cheat Sheet, this phase leads the market toward the “Hope” stage, which is a precursor to the stages of Optimism, Belief, Thrill, and Euphoria.
Bitcoin is valued at $37,073, reflecting a 0.22% uptick in the last 24 hours and a notable 5.68% surge over the past week. Despite forewarning an impending pullback, the analyst remains optimistic about Bitcoin’s resilience. When pressed on how low the correction might go, the crypto analyst offered a relatively conservative estimate, projecting a local low of $35,000, with a maximum dip of $30,000.
Source: TradingView
Interestingly, Ali’s prognostications have found resonance within the crypto community, as numerous respondents expressed agreement and enthusiasm for the projected pullback. Some investors openly leveraged this correction to bolster their positions in the flagship cryptocurrency. As the crypto market holds its breath, all eyes are on Bitcoin’s next move in this intriguing chapter of its market cycle.