Bitcoin's brief trip to $13.2K suggests profit-taking price correction

The price of Bitcoin surpassed $13,000 for the first time since June 2019.

Immediately after the PayPal news was reported, the price of Bitcoin increased from $12,300 to $13,200 at the day's peak.

Initially, the BTC rally began as profits from altcoins and decentralized finance tokens cycled into BTC. Some industry players like Sam Bankman-Fried, CEO of derivatives exchange FTX, revealed a cautious stance toward DeFi tokens, admitting that he placed a 200 net Yearn.

Analysts are slightly cautious in the immediate-term in the price trend of Bitcoin.

There is a strong possibility that BTC would see a continuation of its ongoing rally after a short consolidation period, as according to the data from Skew, all Bitcoin markets, including spot, derivatives and options, are showing a high level of demand after the PayPal news.

If Bitcoin sees a profit-taking pullback and consolidates, analysts expect the next range of BTC to form between $12,500 to $13,500 and stay there for the upcoming months until the next breakout.

A tight range under a key resistance level that has pushed BTC down for nearly four years puts BTC in a positive position, placing a new record-high at arm's length, especially when the next breakout occurs.

Another variable for BTC is whether new capital would continue to flow into Bitcoin or diversify into the altcoin market.

Another major financial institution could announce support for BTC or allocate a fraction of their capital into BTC, fueling retail interest.

While the CME Bitcoin futures market's open interest has also increased alongside the volume of LMAX Digital and Bakkt, indicating a contango of rising volume across institutional and spot markets.