Don’t Trust Bitcoin’s (BTC) Pump: Analysts Warn the Price May Plunge Soon

The primary cryptocurrency has finally staged a strong rebound, with its price briefly climbing above $70,000.

However, numerous analysts warn that the bears remain in charge, predicting that a renewed pullback may quickly replace the daily green candle.

Bulls Shouldn’t Celebrate?

The recent developments in the US-Iran military conflict have heightened volatility in the cryptocurrency market today after a calm weekend. First, the American president Donald Trump warned that the Asian country has until today (April 6) to open the Straight of Hormuz or otherwise “all hell will reign down on them” before he extended the deadline by a day. On Easter, he threatened to turn Tuesday (April 7) into “Power Plant Day and Bridge Day” should the Iranian official keep the important corridor closed.

While Tehran seemed unfazed by the emerging danger and vowed to respond with crushing attacks on the United States and Israel, some reports indicated that a potential ceasefire could be on the horizon. According to The Kobeissi Letter, the two sides may shake hands on a 45-day truce, which could then be followed by a permanent end to the war.

This speculation appears to be the main catalyst behind Bitcoin’s price rise over the past 24 hours. Several hours ago, it exceeded $70,000 for the first time since late March, while currently it trades at around $69,500 (per CoinGecko’s data).

Some popular market observers, though, have alerted that this green wave might be short-lived. X user Aralez noted that the resurgence began on Sunday, pointing out that rallies on that day have typically been followed by short-term corrections. Crypto Analyst echoed the warning, arguing:

X user Ted also chipped in, suggesting that the leading digital asset is currently positioned in the $69,000-$70,000 resistance zone. He believes that a rejection here could result in a drop below $66K, while surpassing that level may lead to a jump to as high as $74,000.

Several days ago, the popular analyst Ali Martinez outlined that BTC’s 50-day and 200-day Simple Moving Averages (SMAs) have crossed on the 3-day chart. He reminded that on previous occasions, this setup has been a precursor to a major double-digit price drop, predicting that such a final capitulation may lead to a washout of roughly $30,000 in the current cycle.

How About Further Gains?

Despite the broadly bearish outlook, some analysts think the asset retains short-term upside potential. X user Trader Tardigrade argued that BTC has entered “the choppy and euphoric phase” and forecasted that “the next move could be explosive.”

Some on-chain metrics, including the asset’s exchange reserve, also give bulls some reasons for optimism. The amount of units stored on centralized platforms fell to a seven-year low towards the end of March, and as of this writing, it is quite close to that mark. This indicates that many investors have moved their holdings toward self-custody, thereby reducing immediate selling pressure.

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