As a seasoned crypto investor with a few bear markets under my belt, I’ve learned that corrections are an inevitable part of any bull market. Bitcoin’s recent drop below $62,000, which represents more than 15% down from its mid-March peak, is no cause for panic. Instead, it’s a sign that the market needs to take a breather before continuing its upward trend.
Bitcoin experienced a significant decrease, dropping by over 15% from its mid-March high and reaching a ten-day low of approximately $62,000 around Monday morning.
On April 28th, a stock market analyst using the nickname ‘Stockmoney Lizards’ announced that the Bitcoin halving had concluded. However, Bitcoin has since continued to display red candles on its price chart.
They expressed the view that we haven’t reached the conclusion of the bull market yet, but issued a cautionary note suggesting that current price adjustments might push values down towards the $50,000 range before resuming their upward trend.
“Call it triple top, call it Wyckoff distribution. Bitcoin is in correction mode,”
#Bitcoin
Halving is done and yet, Bitcoin continues printing red candles. Is this it for this cycle?
A lot of folks are insecure, especially in light of the geopolitical and macroeconomic situation
Let’s take a look at some charts and indicators.
A
— Stockmoney Lizards (@StockmoneyL) April 27, 2024
More Pain Before Gain
As a seasoned crypto investor, I’ve observed our market’s impressive growth over the past six months. However, it’s essential to acknowledge that corrections are an inherent part of any investment landscape. Currently, several factors are contributing to the shifting market sentiment:
Analysts identified multiple levels of resistance at $60K, $56K, and $52K in the price chart. The likelihood of these levels holding increases as the preceding level gives way.
For May, which typically sees little price movement, there’s a possibility of an upward trend within the current correction. This shift could even result in a breakout if market circumstances remain favorable. However, unfavorable news may cause a slide back toward the $50,000 range.
This week, the Federal Reserve is set to announce its decision regarding interest rates. Given the unexpectedly high inflation figures, it’s anticipated that rates will stay unchanged. This uncertainty could intensify market corrections, potentially pushing Bitcoin’s price below its current support level of $60,000.
As a researcher studying market trends, I would urge caution for the upcoming week. Personally, I won’t be entering the market with any open positions due to economic weakness and rising inflation. It’s my belief that such conditions pose a significant challenge for the Federal Reserve.
On The Positive Side
According to Glassnode analyst “Checkmatey,” although the general outlook is pessimistic in the short term, the situation isn’t as dire as it seems.
As a researcher studying the Bitcoin market, I’ve noticed an intriguing pattern among retail holders. These individuals, who seemed to sell off their Bitcoins at the slightest sign of market correction in the past, have recently started accumulating more satoshis (the smallest unit of Bitcoin) once again.
Approximately 12,200 coins in the form of Shrimp-sized Bitcoin accounts are being amassed each month, based on the latest statistics from Glassnode.
As a researcher studying Bitcoin market dynamics, I would rephrase your statement as follows:
…appear to be stacking sats once again.
Shrimp (<1 $BTC) are accumulating 12.2k $BTC per month as it stands.
— _Checkmate (@_Checkmatey_) April 28, 2024
As a researcher studying financial markets, I believe that corrections are essential components of market cycles and present valuable opportunities for investors to acquire undervalued assets. Nevertheless, it’s important to acknowledge that the severity and duration of the current correction remain uncertain at this point in time.
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2024-04-29 13:29