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The cryptocurrency market has recently gone through a correction period, with Bitcoin leading this decline. According to a recent report, realized losses have exceeded the weekly average, signaling a possible end to this correction. With Bitcoin currently climbing back to $98,600, can we already turn the page on this bearish period?
Bitcoin Correction: Really the End?
Bitcoin has undergone a significant correction that saw its price drop by over 15% from its all-time high. However, this was not a surprise to analysts, as after reaching all-time highs of $107,600, such a drop is often seen as a healthy and necessary step for the market.
The price of Bitcoin falling below $93,000 on December 20 marked what Captain Faibik referred to as an almost completed correction. He explains that this decline was due to a massive bearish divergence between the price of BTC and the relative strength index (RSI), often followed by a drop of 8 to 10%, considered a “healthy readjustment”.
Despite realized losses of BTC reaching $28.9 million over the past five days, which is 320% above their weekly average in 2024, this correction nevertheless represented a buying opportunity. It was seen as a chance to buy Bitcoin at a reduced price before a potential market recovery.
BTC Recovery and Future Prospects
Historically, each BTC correction has been followed by a significant growth period. Therefore, Bitcoin currently trading at $98,600 could well indicate the end of this correction. However, analysts remain cautious as future movements will depend on market stability and investor reactions. Volatility remains a key factor to watch.
In summary, although the Bitcoin correction seemed alarming in the short term, it also offered opportunities for savvy investors. Bitcoin has resumed its bullish run, and analysts remain optimistic about the long-term prospects of BTC, predicting new highs in 2025.
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Le monde évolue et l’adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m’intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l’optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
