As a researcher with experience in the cryptocurrency market, I have seen my fair share of volatility and price corrections. The recent fall of BTC prices to a two-month low of $59,130 on May 1 does not alarm me as it is just another instance of normal market activity. This is the fourth correction of such magnitude over the past 12 months, and while it may be painful for some investors, it is a necessary part of any bull market cycle.
As a researcher studying cryptocurrency markets, I’ve observed that Bitcoin‘s price dipped to a level not seen since late March, reaching $59,130 during the initial trading sessions on May 1 – a day off for the majority of Asian economies.
The asset’s price has dropped to a level not seen since late February, a period when the market trend was strongly in favor of buying (bullish momentum).
As a researcher, I’m currently focusing my attention on the potential future developments of the market correction we’ve recently experienced. With monthly support no longer holding, I’ll be closely monitoring the market to identify the next levels at which prices may stabilize or continue their downtrend. Additionally, I’ll be keeping an eye on the possible bottom points of this correction, in order to assess potential buying opportunities for those looking to invest.
Normal Market Activity
As a crypto investor, I’ve noticed that even though the current correction has reached a significant 19.8%, industry analysts and experts seem unfazed. According to Raoul Pal, founder and CEO of Global Macro Investor, this is actually the fourth major correction we’ve experienced over the past year.
This is the 4th 20% correction in BTC in 12 months…pretty ordinary stuff.
— Raoul Pal (@RaoulGMI) April 30, 2024
Additionally, historical corrections during past bull markets have been more severe. Consequently, it’s possible that the current market downturn may experience greater setbacks before any potential recovery.
Expert analysis by “Cold Blooded Shiller”: The current trend indicates that Bitcoin may experience a further 30% drop from its mid-March peak, with potential prices reaching around $52,000. At present, the bearish sentiment prevails.
As a researcher, I would advise taking a cautious approach before investing significant funds in the market. I believe it’s essential to wait for either the market reaching a floor at $52k after a potential correction, or seeing a strong recovery above the resistance level of $62.5k, or ideally, a pullback to the desirable entry price around $58,000 before considering making substantial investments.
Meanwhile, Capriole Fund founder Charles Edwards concurred that corrections were normal, adding:
“If you can’t handle potential drawbacks in this asset class, then it might be best for you to step back, especially given the current circumstances.”
The Kobeissi Letter, a notable macroeconomics source, broadened its perspective in reporting the decline of various asset classes prior to today’s Federal Reserve meeting. These assets encompassed stocks, commodities, and bonds.
“This feels like a general move out of risky assets as uncertainty spikes.”
Current situation:
1. Stocks are down ahead of more big tech earnings
2. Oil prices are down on fears of higher interest rates
3. Gold prices are down on worries over a stronger Dollar
4. Natural gas prices are down on weak US demand
5. Bond prices are down ahead of the May…
— The Kobeissi Letter (@KobeissiLetter) April 30, 2024
Altcoins Getting Hammered
I’ve noticed that the total market capitalization of cryptocurrencies has experienced a significant decrease of approximately 6.4% within the last 24 hours. This equates to around $135 billion in value being withdrawn from the market. The trend seems consistent with previous occurrences, as altcoins tend to bear the brunt of these market corrections.
During Asian trading hours, Ethereum experienced a significant drop of approximately 6.6%, causing its price to plummet beneath the psychologically important $3,000 mark and settle at $2,940. However, there was a slight uptick following this decline.
The remaining altcoins painted a picture of crimson as Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), Avalanche (AVAX), Bitcoin Cash (BCH), and Near Protocol (NEAR) experienced more substantial losses.
The market downturn occurred after it was announced that Changpeng Zhao, the ex-CEO of Binance, received a prison sentence lasting four months.
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2024-05-01 09:35