Bitcoin Correction Analysis: What to Expect Next
As a crypto enthusiast, you must be aware of the recent correction in Bitcoin prices, which have dropped by 18% from the all-time high of $73,737 on March 14. This correction, while significant, is a normal part of market cycles. Analysts believe that the correction may not be over yet, especially with the halving event just around the corner.
Analyst Predictions for the Re-Accumulation Phase
Here are some key insights and predictions from market experts:
- Trader and analyst ‘Rekt Capital’ highlighted three market phases around the halving event, projecting a move into a re-accumulation phase.
- Bitcoin has experienced two 18% retracements before the halving within a month.
- Historically, this kind of downside is common right before the halving event.
- In previous halving cycles, the pre-halving retraces were 38% in 2016 and 19% in 2020.
- Despite the ongoing correction, markets are expected to enter a re-accumulation phase post-halving.
- During this phase, Bitcoin is likely to establish a range low, move sideways, and continue this trend for several months.
- After the 2016 and 2020 halving events, Bitcoin traded sideways for approximately five months before witnessing significant movements.
Insights from On-chain Analytics
Here’s a snapshot of what on-chain analytics firm Santiment had to say:
- Santiment reported a decline in social sentiment on April 18, indicating a negative outlook among traders.
- Market sentiment suggests that the bull market might be nearing its end following the recent Bitcoin correction.
- Interestingly, mentions of a bear market are on the rise, which historically has been contrary to market movements.
Recent Developments in the Crypto Space
Now, let’s look at how other cryptocurrencies are faring amidst the Bitcoin correction:
- Bitcoin prices dipped to $60,000 in late trading but managed to rebound to $62,000 during the Asian trading session on Thursday.
- Ethereum also experienced a drop below $3,000 but later recovered to $3,027 at the time of reporting.
- Most altcoins were in the red, with notable losses observed in Dogecoin, Toncoin, and Polygon.
Hot Take: Your Crypto Portfolio Strategy Moving Forward
As an investor in the crypto space, it’s crucial to stay informed and adapt your strategy based on market conditions. Here’s what you can consider:
- Monitor Bitcoin’s price movements closely, especially as it enters the re-accumulation phase post-halving.
- Assess the sentiment in the market, keeping in mind that price trends often move in the opposite direction of popular belief.
- Diversify your portfolio and consider opportunities in altcoins that show resilience during market downturns.
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