Bitcoin rally cancelled for the time being? – BTC overvalued, according to traders solid

Bitcoin has managed to establish in the last weeks of solid Momentum. The price rose high from the local Low at almost 6,400 USD to over 10,400 USD. Such a rally we have seen since the beginning until the middle of last year, as the BTC with a Pump the Crypto-Winter ended. However, the Party seems to be for the time being, over. At the weekend, Bitcoin fell back below the important limit of 10,000 USD. Currently, the price ranks at just 9.650 USD. This relapse seems to be healthy after BTC knew for days no more. However, according to a well-known Trader, Bitcoin seems to still not be ready for another rally. Quite the contrary: he thinks the digital Gold is currently overvalued even.

Bitcoin’s rally is not for the time being

Bitcoin has risen in this young year, 2020 is already around 35%. This growth was connected with slight corrections, which made the rally a relatively healthy appearance. Still, many wondered how long this would go. On the weekend, some already anticipated the setbacks came. Thus, the view that the market valuation of Bitcoins is too high, and maybe still is confirmed.
It goes to the Trader “Bitcoin Jack” (@BTC_JackSparrow) is BTC is currently not yet ready for another big rally, and perhaps currently even more overvalued. He’s released an analysis in the Form of a picture on Twitter, in which he analyses the Transition of the last bear market in the bull market. To do this, he writes:

#Bitcoin analysis of Fair value
We are not yet ready for the moon.

Where is the Overestimation?

The said Transition of the exchange rate of Bitcoin of a bear in a bull market took place between 2014 and 2017. At that time BTC needed 1.246 days, to set the old all time high to break through and a new. The Trader is this Time that Bitcoin will need to 1,120 days. We are currently still a lot of things, because that would be the end of 2020 or early 2021.
But why is overvalued, the price currently? The Bitcoin Jack “looks”, mainly due to the fact that Bitcoin was at the last Transition, most of the time is below the 0.5 Fibonacci Level, whereas BTC this is the Level that is currently several times has broken.
The Analyst is of the view that this suggests that Bitcoin is above its fair-market valuation, and that it is for the future growth of “healthy” would be to spend more time under the 0.5 Fibonacci level.
Nevertheless, the medium – and long-term orientation, of course, remains clearly bullish. In the last few weeks has indicated but a little: a lot of Altcoins have been able to achieve Bitcoin to outperform and more profits. Some summon the next Altcoin-Season up. We can be curious as to whether this development will continue in the next few weeks. If you are looking for Altcoin shopping for a reliable Partner, we can you Binance, one of the largest Crypto stock exchanges, recommend worldwide.

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