Bitcoin: Normal correction on the way to a new peak

Bitcoin: Normal correction on the way to a new peak

Bitcoin is currently going through a "normal correction", which is typical of cyclical market movements. After a January peak of $109,000, the cryptocurrency has fallen 24%, which analysts consider a normal retracement. "Things got overheated and the market needed to cool down," said Ben Simpson, CEO of Collective Shift.

According to other experts, such as Nick Forster of Derive, Bitcoin is likely still heading for a cycle peak. "Historically, these corrections occur during long rallies," he added. Bitcoin is currently trading around $82,824 and its price has fallen 13.58% in the past month.

Macroeconomic conditions, particularly the uncertainty around US interest rates, are playing a key role in the current developments. Independent Reserve CEO Adrian Przelozny noted that these factors affect not only Bitcoin, but all asset classes.

Experts agree that the future direction of the bitcoin price will depend on monetary policy, especially possible rate cuts and liquidity easing. Charles Edwards of Capriole Investments warned that the current situation could change quickly if the Fed intervenes.

While some, like Ki Young Ju of CryptoQuant, argue that the bull cycle is over, others believe that Bitcoin still has a chance to grow. "The odds are 50:50," Edwards summarized. So the market is looking for a new story that could bring Bitcoin back to the top.


*This is not an investment recommendation.


Coingarage team