Bitcoin went through a massive correction to under $60,000 after blasting past a new all-time high above $69,000 on Wednesday.
Experts indicate that despite the volatility, there’s continued positivity in the market, hinting at potentially strong movements in the days ahead.
Correction Brings Renewed Positivity
CryptoQuant’s latest analysis, for one, suggests that the ongoing correction in Bitcoin’s price is actually fostering a more positive outlook for the crypto asset.
The on-chain intelligence platform said that the market appears to have hit the bottom of the index based on past cycles. As such, the recent correction is anticipated to amplify these losses, which is seen as a favorable development.
Historically, this indicator shows that until it reaches the market peak, there’s a period of price oscillation marked by rises and falls, ultimately leading to the formation of the Bitcoin peak.
“In summary, according to this indicator, positivity continues, accompanied by strong fluctuations in the coming days.”
Analyst Aksel Kibar shared a chart on X demonstrating Bitcoin’s surge beyond the $69,000 mark, labeling it as the “FOMO stage.” Earlier, he had observed Bitcoin trading within the $65,000 to $68,000 range, nearing the peak witnessed in November 2021, around $69,000. He cautioned investors against succumbing to the fear of missing out at this particular level.
$BTCUSD FOMO stage. Caution. https://t.co/MQJUMXAAEZ pic.twitter.com/Os49hq8Uo2
— Aksel Kibar, CMT (@TechCharts) March 5, 2024
Sideways Bitcoin Trading Imminent?
10x Research also echoed a similar sentiment and highlighted the Bitcoin Analog Model which predicted a crash followed by another rally. The platform further stated the expectation for the Bitcoin bull market to continue barring any major macroeconomic events affecting liquidity.
It predicted that the recent significant decline in Bitcoin prices may lead to sideways trading for the next 1-2 weeks, impacting new investors while emphasizing the importance of capitalizing on the final stages of bull markets for maximum returns, particularly in crypto, where volatility peaks.
The impact of unknown wallet addresses dumping significant Bitcoin near the all-time high and the potential influence of FTX creditors and Genesis selling off significant amounts of Grayscale’s GBTC could also sway the price acion. In such a case, the selling pressure could continue for several days, potentially leading to a deeper correction in the market.
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