It’s been a massive rally over the last 15 months in the crypto sector since bitcoin bottom at US$3,800 on March 13th, 2020. reaching price at around US$65,000 bitcoin saw a price explosion of more than 1,600%! Now however the sector seems ripe for some form of a healthy pullback and a breather. Bitcoin – Caution, the crypto sector is getting a bit overheated in the short-term!
Bitcoin year to date, Daily Chart as of May 10th, 2021. Source: Tradingview
Since the beginning of the year, the price of Bitcoin has increased by almost 100%. Thus, the outperformance of Bitcoin compared to almost all other asset classes continued mercilessly. It seems as if bitcoin, or rather the crypto sector, wants to suck up everything like a black hole.
However, the Bitcoin markets have also been witnessing an increasingly waning momentum since late February. In particular, the pace of the rise had slowed down more and more since prices pushed above U