Despite ongoing talk about Bitcoin potentially dropping significantly, some cryptocurrency analysts aren’t convinced it will happen.
Bitcoin’s price has remained steady, staying just above the critical $65,000 support level. Many traders feel confident in this stability. In fact, some are now questioning whether a big drop is likely to occur anytime soon.
Bitcoin Price Stability Amidst Speculation: Crypto Traders’ Perspectives
According to pseudonymous crypto trader Yoddha, Bitcoin’s current strong price performance suggests a deep correction might not be imminent, as he shared with his 49,000 followers on May 18.
Meanwhile, pseudonymous trader Rekt Capital pointed out that a significant correction has already occurred, noting Bitcoin’s price drop from $66,421 on April 24 to $56,792 on May 2, based on CoinMarketCap data.
“We’ve experienced a deep and prolonged correction, and with a combination of these factors, the bottom is often near,” Rekt Capital asserted in a recent update.
Bitcoin is up 8.95% over the past 30 days. Source: CoinMarketCap
Despite this, Bitcoin bounced back above the critical support level of $65,146 on May 6, a pattern some traders see as typical during bullish phases.
“Normal corrections in Bitcoin bull markets tend to be sharp and swift, followed by a rapid recovery,” explained crypto commentator Starbust in a post on May 18.
Bitcoin Price Analysis and Current Market Sentiment
Crypto trader Mags referenced the “Psychology of a Market Cycle” from the Wall Street Cheat Sheet, suggesting that Bitcoin is entering the “belief” phase. This phase typically sees investors gaining confidence in market gains.
Analysts are closely monitoring Bitcoin’s price for indications of further correction, especially following the Bitcoin halving event on April 20, drawing comparisons to past halvings as a guide.
For instance, after the May 2020 halving, Bitcoin surged from $9,383 to $58,958 by May 2021. However, just a month later, it experienced a 40% correction, dropping to $35,484 in June.
Some analysts argue that scrutinizing Bitcoin’s price chart is futile until it breaks past $70,000, nearing its all-time high again.
On May 17, Mati Greenspan, founder of Quantum Economics, highlighted, “It’s the breakouts that are exciting, so until we have a breakout, analyzing the charts will be pretty futile.” Pseudonymous crypto trader PlanC echoed this sentiment, advising to “forget all the short-term price action.”
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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