The price of Bitcoin has solidified its position just above the key support level of $65,000, and crypto traders are confident in its stability. Some even doubt the possibility of a significant correction in the near future.
A pseudonymous crypto trader named Yoddha shared his belief with his 49,000 followers on May 18, stating, “Bitcoin is holding up the price so strongly that I don’t think there will be a deep correction.”
Another pseudonymous trader, Rekt Capital, pointed out that a significant correction event has already occurred. According to CoinMarketCap data, the price of Bitcoin fell by 15% from $66,421 on April 24 to $56,792 on May 2.
“We’ve already experienced a deep correction and a long correction, which indicates that the bottom is near,” Rekt Capital stated in a recent post.
However, just four days later on May 6, Bitcoin’s price rebounded above the critical support level at $65,146. Some traders see this trend as 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 in a May 18 post.
Mags, another crypto trader, referred to the Wall Street Cheat Sheet’s “Psychology of a Market Cycle” to highlight that Bitcoin is entering the “belief” phase of the cycle, where investors become more confident in market gains.
Analysts and observers are closely monitoring Bitcoin’s price for signs of further correction, especially after the Bitcoin halving event on April 20. They draw on past halving events as a precedent.
Following the Bitcoin halving in May 2020, the price surged from $9,383 to $58,958 by May 2021. However, just a month later, it experienced a 40% correction, dropping to $35,484 in June.
Some analysts believe that it is not worth scrutinizing Bitcoin’s price chart until it breaks past $70,000 and approaches its all-time high again.
Quantum Economics founder Mati Greenspan explained to Cointelegraph on May 17 that “it’s the breakouts that are exciting, so until we have a breakout, analyzing the charts will be pretty futile.”
Pseudonymous trader PlanC added, “Forget all the short-term price action.”
In conclusion, the Bitcoin price remains strong, and traders are optimistic about its stability. There have been significant corrections in the past, but the current formation suggests that the bottom is near. Analysts are closely watching for breakout moments and believe that analyzing the charts before such a breakout is futile.