Bitcoin’s price has solidified its position just above the crucial support level of $65,000, leading crypto traders to believe that its current formation is robust. Some traders are even questioning the possibility of a significant correction in the near future.
According to pseudonymous trader Yoddha, Bitcoin’s price is holding up so strongly that he does not anticipate a deep correction. He shared this sentiment with his 49,000 followers on May 18.
Another pseudonymous trader, Rekt Capital, pointed out that the significant correction has already occurred. Between April 24 and May 2, Bitcoin’s price dropped by 15% from $66,421 to $56,792, as reported by CoinMarketCap.
“We’ve experienced a deep correction and a lengthy correction. When you have a combination of both, the market bottom is usually very close,” Rekt Capital recently stated.
Despite this correction, Bitcoin’s price rebounded above the critical support level of $65,146 on May 6. Some traders view this as a normal occurrence during bull runs. As crypto commentator Starbust explained, corrections during Bitcoin bull runs are typically sharp and quick, followed by a quick bounce back.
Drawing on the Wall Street Cheat Sheet’s “Psychology of a Market Cycle,” trader Mags suggests that Bitcoin is currently entering the “belief” phase, where investors become more confident in market gains.
Analysts and observers are closely monitoring Bitcoin’s price for signs of further correction, especially after the Bitcoin halving event on April 20. Previous halving events have served as precedents for such corrections.
Following the halving in May 2020, Bitcoin’s price 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 believe that analyzing Bitcoin’s price chart is futile until it breaks out past $70,000, closer to its all-time high. Quantum Economics founder Mati Greenspan explains that breakouts are the exciting moments to watch, and until then, analyzing the charts would be of limited value.
Pseudonymous trader PlanC emphasizes focusing on the bigger picture and disregarding short-term price action.
In conclusion, Bitcoin’s price has shown resilience above the crucial support level, leading traders to doubt the possibility of a deep correction. While analysts and observers are monitoring the price closely, some believe that analyzing the charts is futile until Bitcoin breaks out past $70,000.