Bitcoin has experienced a decline of approximately 20% in the past three months, but cryptocurrency traders are not concerned, asserting that it is simply a regular correction in the market cycle.
Raoul Pal, the CEO of Real Vision, stated on April 30 that this is the fourth 20% correction in BTC within the past 12 months. He compared the current price level to when Bitcoin reached its all-time high of $75,830 on March 14, emphasizing that this correction is nothing out of the ordinary.
In a post on the same day, a pseudonymous crypto trader known as Rekt Capital expressed that this correction is exactly what the market cycle needs to realign with historical price norms and the traditional Halving Cycle.
Thomas Fahrer, the CEO of the crypto-focused reviews portal Apollo, added that while the price of Bitcoin might fall to $40K, it could also rise to $400K. He sees this volatility as a great opportunity for investment.
As of now, Bitcoin is trading at $59,730 after a 6% decrease in the past 24 hours, according to data from CoinMarketCap.
In the past 30 days, Bitcoin’s price has dropped by 15.98%, indicating a significant decline. CoinMarketCap data shows that Bitcoin briefly traded below support levels at $59,097, resulting in the liquidation of $96.5 million in long positions, as reported by CoinGlass.
Rekt, in a separate post on X, commented that Bitcoin’s price is inching closer to its final bottom with each additional 1% decrease. This suggests that the correction may be nearing its end.
Ben Simpson, the CEO of Collective Shift, believes that the market may currently be in a “lull period” following the recent Bitcoin halving. He attributes this to a lack of new narratives for traders. However, Simpson remains optimistic about the market’s long-term prospects beyond the next few months.
Several traders have also identified bullish indicators on Bitcoin’s price chart, signaling a potential breakout in the coming months. Gally Sama, a crypto trader, pointed out the formation of a cup-and-handle pattern, which suggests a u-shaped recovery after a price fall. This pattern indicates that the price may rebound and potentially surpass previous highs.
Bitcoin’s decline has not been isolated, as the overall crypto market has also experienced widespread corrections. Ether (ETH) has fallen by 7.4%, Solana (SOL) by 10.1%, and Dogecoin (DOGE) by 10.1%.
The market decline has resulted in a decrease in investor confidence, according to the Fear and Greed Index. The index score dropped to a “neutral” 54 on May 1, the lowest it has been in three months, marking a significant decrease from the “greed” score of 67 on April 30.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.