Bitcoin's 20% Drop Unruffles Traders; Viewed as Regular Market Cycle Adjustment
Summary:
Crypto traders are not worried despite Bitcoin's approximated 20% three-month decline, viewing it as a standard market cycle correction. Bitcoin is trading at $59,730 after falling 6% over the last 24 hours, with its price dropping 15.98% in the past 30 days, reported CoinMarketCap. Along with Bitcoin, other cryptocurrencies like Ether, Solana, and Dogecoin have also faced notable corrections. The overall investor sentiment has also dipped, as witnessed in the Fear and Greed Index that plunged to a "neutral" 54 on May 1.
Despite Bitcoin (BTC) witnessing an approximately 20% fall in the last three months, cryptocurrency traders are not troubled, stating it's an expected adjustment in the market cycle. "This is the 4th 20% pullback in BTC in a 12-month span... Pretty run of the mill," articulated Raoul Pal, the CEO of Real Vision in a post on April 30 — juxtaposing its contemporary price point with when Bitcoin peaked to an all-time high of $75,830 on March 14. "This is precisely what is required to realign the cycle with historical price norms and the classic Halving Cycle," voiced an anonymous cryptocurrency trader Rekt Capital on the same day. "Prices could dip to $40K or soar to $400K. Unpredictability is the name of the game, but it's an attractive gamble," asserted Thomas Fahrer, CEO of the crypto-centric review portal Apollo. As of publishing, Bitcoin stands at $59,730, having declined 6% in the past 24 hours, according to CoinMarketCap data. The price of Bitcoin has plummeted by 15.98% over the past month as per CoinMarketCap. It briefly fell beneath its support levels to $59,097, triggering the liquidation of $96.5 million in long positions, as per CoinGlass data. Rekt opined in a separate post on the same day that the price of Bitcoin is inching closer to its ultimate bottom with each -1% slide. Ben Simpson, CEO of Collective Shift, expressed to Cointelegraph that he believes the crypto market might now be in a "quiet spell" after the recent Bitcoin halving due to an absence of fresh narratives for traders. Nonetheless, he is hopeful about the market’s long-term outlook beyond the coming months. Others in the trading community also identified potentially positive signals forming on Bitcoin's price chart indicating a possible increase in value in the upcoming months. Cryptocurrency trader Gally Sama identified a developing cup-and-handle pattern on Bitcoin's price chart – a pattern where the price drops and then recovers, forming a U-shape, resembling a cup – stating that the handle was forming "around or at the same level as the previous highest points." Parallel to Bitcoin, the broader crypto market also underwent corrections, as Ether (ETH) fell by 7.4%, Solana (SOL) dipped 10.1%, and Dogecoin (DOGE) saw a 10.1% drop. The dwindling market has affected overall investor sentiment in the last 24 hours, as reflected by the Fear and Greed Index. On May 1, the index was rated a "neutral" 54 – the lowest it has been in three months – having fallen 13 points from a "greed" score of 67 on April 30. This article does not provide investment counsel or endorsements. All investing and trading actions bear risk, necessitating readers to undertake their own comprehensive research before making any decision.
Published At
5/1/2024 6:08:08 AM
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