Technology

Analyst Explains How This BTC Retreat Is Different – Crypto News

Published

1 year ago

May 1, 2024

Dripp

The Bitcoin price has witnessed a sharp decline today, gaining attention from investors. Meanwhile, the flagship crypto has slipped below $57,000 today, falling more than 7% over the last 24 hours amid a broader crypto market crash. Notably, it seems that the investors are staying on the sideline ahead of the FOMC decision on interest rates today.

Meanwhile, amid the selling pressure noted in the market today, a popular analyst has unveiled potential reasons that differ the current Bitcoin price correction from the previous ones.

How The Ongoing Bitcoin Correction Is Different

The recent correction in the Bitcoin market has garnered significant attention, with analysts pointing out key differences compared to previous downturns. According to a report from 10X Research, this correction stands out due to several unique factors.

Firstly, Bitcoin experienced another 20% correction within a larger bull market, marking the third such correction since the onset of the 5th Bitcoin bull market in June 2023. Remarkably, 10X Research accurately predicted all three corrections, signaling their deep understanding of market dynamics.

Moreover, what sets this correction apart is the involvement of institutional investors, who approach risk management differently from retail traders. With the average entry price of US Spot Bitcoin ETF holders estimated at around $57,300, institutional sentiment plays a significant role as Bitcoin prices near this level.

Meanwhile, the validation of Bitcoin’s new one-year high aligns with 10X Research’s early prediction for the start of a potential new bull market in January 2023. This positive trajectory is further bolstered by Bitcoin’s proximity to the halving price projection of $63,160, a forecast made in October 2022.

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Price & Performance Amid Market Crash

The Bitcoin price was down 7.87% and traded at $56,902.75, while its trading volume over the last 24 hours rose 61.90% to $45.29 billion. Notably, the crypto has touched a low of $56,555.29 in the last 24 hours, reflecting the selling pressure in the market.

However, despite the recent price slump, which many have attributed to FOMC and other related concerns, some analysts have provided a bullish forecast for Bitcoin. Looking at the long-term perspective, the market pundits seem to have remained bullish on the crypto.

For instance, a popular crypto market analyst Captain Faibik said that he expects a “bullish rally” in the coming days, which might push Bitcoin price to a new all-time high. In addition, another prominent market expert Michael van de Poppe suggests that Bitcoin’s correction phase may be nearing its end, having already decreased by 20% from its recent highs.

Meanwhile, he anticipates further downside but highlights the importance of monitoring the $56-58K range for potential support. Simultaneously, the expert predicts a bounce for altcoins before Bitcoin’s stabilization.

However, despite the bullish outlooks from the market pundits, investors are advised to remain vigilant amid market fluctuations.

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