Bitcoin’s price has solidified its position just above the key support level of $65,000, leading crypto traders to believe that its formation is resilient. In fact, some traders are questioning the possibility of a significant correction in the near future.
Pseudonymous crypto trader Yoddha, with a following of 49,000 X, expressed confidence in Bitcoin’s ability to maintain its price stability. “Bitcoin is holding up so strongly that I don’t think a deep correction will occur,” Yoddha stated on May 18.
Another pseudonymous trader, Rekt Capital, pointed out that the major correction event has already taken place. According to CoinMarketCap data, Bitcoin’s price fell by 15% from $66,421 on April 24 to $56,792 on May 2. Rekt Capital believes that when a mix of deep and long corrections occur, the bottom is usually in close proximity.
Although just four days later, on May 6, Bitcoin’s price 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, followed by a quick bounce back,” explained crypto commentator Starbust on May 18.
Crypto trader Mags referred to the Wall Street Cheat Sheet’s “Psychology of a Market Cycle” to highlight Bitcoin’s current phase, known as the “belief” phase. This phase is characterized by increased investor confidence in market gains.
As analysts and observers closely monitor Bitcoin’s price, they are particularly interested in signs of further correction following the halving event on April 20. Past halving events serve as a precedent for such analysis. After the halving in May 2020, Bitcoin’s price surged from $9,383 to $58,958 by May 2021. However, a month later, it experienced a 40% correction, dropping to $35,484 in June.
While some analysts believe that analyzing Bitcoin’s price chart is futile until it surpasses $70,000 and approaches its all-time high again, Quantum Economics founder Mati Greenspan expressed excitement for potential breakouts. “Until we have a breakout, analyzing the charts will be pretty futile,” Greenspan stated on May 17.
Pseudonymous trader PlanC echoed this sentiment, urging others to focus on the bigger picture rather than short-term price action.
In summary, Bitcoin’s price remains steady above its key support level, leading traders to doubt the likelihood of a significant correction. However, analysts are closely monitoring the situation for signs of further correction, drawing on past halving events as a precedent. Until a breakout occurs, analyzing the charts may not provide meaningful insights.