The price of Bitcoin has solidified its position slightly above the key support level of $65,000, and crypto traders are confident in its stability. There are even doubts about the possibility of a significant correction in the near future.
A pseudonymous crypto trader named Yoddha, who has 49,000 followers, stated on May 18, “Bitcoin is holding up the price so strongly that I don’t think there will be a deep correction.”
Another pseudonymous crypto trader, Rekt Capital, pointed out that the significant correction event has already occurred. According to CoinMarketCap data, the price of Bitcoin fell by 15% from $66,421 on April 24 to $56,792 on May 2.
“We’ve already had a deep correction and a long correction, and when you have a combination of both, the bottom is always very close,” Rekt declared in a recent post.
However, just four days later, on May 6, the price of Bitcoin rebounded above the critical support level at $65,146. Some traders consider this trend to be common during bull runs.
“Normal corrections in Bitcoin bull runs are usually sharp and quick with a quick bounce back,” explained crypto commentator Starbust in a May 18 post.
Crypto trader Mags referred to the Wall Street Cheat Sheet’s “Psychology of a Market Cycle” to highlight that Bitcoin is now in the “belief” phase of the cycle, where investors become more confident in market gains.
Analysts and observers are closely monitoring Bitcoin’s price for signs of further correction, especially since the halving event on April 20. They are drawing on past halving events as a precedent.
After the Bitcoin halving in May 2020, the 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 it is not worth scrutinizing Bitcoin’s price chart until it breaks out past $70,000 and approaches its all-time high again.
“It’s the breakouts that are exciting, so until we have a breakout, analyzing the charts will be pretty futile,” explained Quantum Economics founder Mati Greenspan.
Pseudonymous crypto trader PlanC added, “Forget all the short-term price action.”
In conclusion, despite previous corrections, the Bitcoin price remains stable, and traders are optimistic about its performance. The market is closely watching for any signs of a breakout or further correction.