On Thursday, Bitcoin (BTC) began to rally massively. After trading under $5,300 for a week as a result of the Bitfinex and Tether news, the cryptocurrency began to push past key levels, somehow reaching $5,800 by Friday. Some fear that this move came to quick, however, meaning that the digital asset market may be poised for a pullback.
Statistical crypto analyst, Awe & Wonder, broke down the reasoning for this belief. He noted that Bitcoin is currently mirroring a historical trend to underperform its logarithmic regression trend line, which sits around 40% higher than the current value of BTC. While there is an opportunity that the asset pushes to and past that trend line, the analyst notes that if historical precedent is followed, BTC will pullback and remain under this key level for the foreseeable future.