Bitcoin’s value has solidified just above the key support level of $65,000, leading crypto traders to believe that its current formation is holding strong. Some traders are even skeptical about the possibility of a significant correction in the near future.
One pseudonymous crypto trader, Yoddha, expressed confidence in Bitcoin’s resilience, stating, “Bitcoin is holding up the price so strongly that I don’t think there will be a deep correction.” This sentiment was shared with his 49,000 followers on May 18.
Another pseudonymous trader, Rekt Capital, pointed out that the significant correction event has already taken place. According to CoinMarketCap data, Bitcoin’s price dropped by 15% from $66,421 on April 24 to $56,792 on May 2. Rekt Capital stated, “We’ve had a deep correction, we’ve had a long correction, and when you have a mix of both, the bottom is always very close.”
Although Bitcoin rebounded above the critical support level at $65,146 just four days later on May 6, some traders consider this to be a common trend during bull runs. Crypto commentator Starbust explained, “Normal corrections in Bitcoin bull runs are usually nukes that are sharp and quick with a quick bounce back.”
Additionally, crypto trader Mags referred to the Wall Street Cheat Sheet’s “Psychology of a Market Cycle” to explain that Bitcoin is currently in the “entering belief” phase of the cycle, where investors gain confidence in the market’s gains.
Analysts and observers are closely monitoring Bitcoin’s price for signs of further correction, particularly following the Bitcoin halving event on April 20. Past halving events serve as a precedent, such as the surge in Bitcoin’s price from $9,383 to $58,958 between May 2020 and May 2021, followed by a 40% correction to $35,484 in June.
Some analysts believe that analyzing Bitcoin’s price chart is pointless until it breaks past $70,000, closer to its all-time high. Quantum Economics founder Mati Greenspan explained that “it’s the breakouts that are exciting, so until we have a breakout, analyzing the charts will be pretty futile.” Pseudonymous trader PlanC echoed this sentiment, stating, “Forget all the short-term price action.”
In conclusion, Bitcoin’s price has stabilized above the crucial support level, leading traders to doubt the possibility of a deep correction. However, analysts are closely watching for signs of further correction and are waiting for a breakout above $70,000 before conducting detailed chart analysis.