Bitcoin Markets Struggle to Overcome Resistance
The Bitcoin markets have been relatively stagnant since the beginning of December, with resistance levels at $44,000 and $43,000 proving difficult to surpass. Despite potential ETFs on the horizon, market analyst ‘CryptoCon’ believes that long-term data indicates a mid-cycle top. This mid-cycle top has occurred in previous Bitcoin cycles and is typically followed by a significant market correction.
The Historical Pattern of Mid-Cycle Tops
In 2019, a mid-cycle top appeared in June when BTC prices reached $13,000. However, they later dropped to $4,000 during the pandemic-induced black swan event before eventually reaching a new all-time high in late 2021. In 2016, a similar mid-cycle top occurred in June, followed by a 33% correction before the bull phase began in 2017. If history repeats itself, this time could see a correction that brings Bitcoin prices back to around $24,000.
Experts Agree on Correction Theory
Bitcoin investor “Titan of Crypto” supports the correction theory and sees it as a pre-halving rally. He emphasizes that corrections are normal in bull markets and presents an opportunity for investors to dollar cost average.
Hot Take: A Mid-Cycle Correction Could Be Imminent
The resistance at $43,000 and the historical pattern of mid-cycle tops suggest that a correction may be on the horizon for Bitcoin. If this occurs, Bitcoin prices could potentially drop to around $24,000 before showing signs of recovery. However, it’s important to remember that corrections are part of the natural cycle of bull markets and can present opportunities for savvy investors to enter or average their positions.
By
By
By
By