Ash Crypto cryptocurrency analyst revealed that Bitcoin has entered an “excitement” phase. The analyst further explained what to expect from the development of the flagship cryptocurrency once it enters the bull market.

What to expect from Bitcoin in the “wood” phase

In the post, X Ash Crypto revealed that Bitcoin is entering a thrill phase. On this basis, he told market participants to expect high volatility and more liquidations. Overall, the analyst noted that Bitcoin’s price trend will be up if it continues to strike up-to-date all-time highs (ATH). He predicts that BTC will rise as high as $150,000.

The accompanying chart showed that the invigorating phase of the market cycle is when investors and traders can become overly excited about a bull market and decide to go all in with leverage. However, as Ash Crypto pointed out, this may not be possible as there will be many liquidations during this period.

Despite being a bull market, Bitcoin’s price has corrected at various times after reaching up-to-date highs and washing out over-leveraged long positions. Alex Thorndirector of research at Galaxy Research, also explained earlier in the year that bull markets are not characterized by straight lines and that significant price corrections are expected.

However, in the long run, bears have a shorter arm in a bull run as prices trend higher. Crypto analyst Ali Martinez recently revealed that over $800 million will be liquidated if Bitcoin rebounds towards $93,000. This is the price level that BTC reached just two days ago when it reached a up-to-date ATH of $93,400.

Since then, Bitcoin’s price has corrected and dropped below $90,000. This was partly because Data on PPI inflation in the USAwhich is more than expected. This situation raises some doubts whether the Fed will be willing to further reduce interest rates in December.

Greater price correction in the low term?

Ali Martinez suggested that the price of Bitcoin may experience further declines in the low term. In X’s post, a cryptocurrency analyst said that the journal Relative Strength Index (RSI) shows that Bitcoin is in overbought territory, which usually signals a potential upcoming price correction.

This price correction may also occur when Bitcoin investors want to protect profits. Martinez revealed that $5.2 billion in BTC profits were realized and the seller-side risk ratio increased to 0.524%. He warned market participants to remain vigilant and proceed with caution. Government of Bhutan belongs to the whales that are already securing profits, as they recently sold $33 million worth of BTC, just weeks after selling $66 million worth of BTC.

At the time of writing, Bitcoin is trading at around $87,780, down more than 2% in the last 24 hours, according to data from CoinMarketCap.

Featured image created with Dall.E, chart from Tradingview.com