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Bitcoin’s price has recently cemented its position slightly above the key support level of $65,000. This stability has led many crypto traders to believe that Bitcoin’s price is holding strong, casting doubts on the possibility of a deep correction in the near future.
Current Market Sentiment
Traders’ Perspectives
Prominent pseudonymous crypto trader Yoddha shared his optimism on May 18, stating to his 49,000 followers on X, “Bitcoin is holding up the price so strongly that I don’t think there will be a deep correction.”
Rekt Capital, another well-known trader, emphasized that the significant correction has already occurred, with Bitcoin’s price dropping 15% from $66,421 on April 24 to $56,792 on May 2, according to CoinMarketCap data. He noted, “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.”
Historical Trends
Crypto commentator Starbust also weighed in, highlighting that sharp and quick corrections followed by swift rebounds are common during Bitcoin bull runs. On May 18, he explained, “Normal corrections in Bitcoin bull runs are usually nukes that are sharp and quick with a quick bounce back.”
Trader Mags pointed to the Wall Street Cheat Sheet’s “Psychology of a Market Cycle” to suggest that Bitcoin is entering the “belief” phase of the cycle, where investors begin to gain more confidence in market gains.
Recent Price Movement
Bitcoin’s price saw a rebound above the critical support level of $65,146 just four days after its dip on May 6, a trend some traders view as indicative of the resilience seen during bull runs.
Post-Halving Analysis
Analysts are keeping a close watch on Bitcoin’s price movement, especially following the Bitcoin halving event on April 20. Drawing from past halving events, Bitcoin’s price surged from $9,383 in May 2020 to $58,958 by May 2021, only to face a 40% correction, dropping to $35,484 in June 2021. This historical context has some analysts cautious but still optimistic about the future trends.
Looking Forward
Mati Greenspan, founder of Quantum Economics, noted to Cointelegraph on May 17, “It’s the breakouts that are exciting, so until we have a breakout, analyzing the charts will be pretty futile.” This sentiment is echoed by pseudonymous crypto trader PlanC, who added, “Forget all the short-term price action.”
Market Strategy
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Conclusion
Bitcoin’s current price stability at $66.9K is casting doubts on the possibility of a deep correction. With historical trends and recent market behavior supporting the resilience of Bitcoin, traders and analysts remain cautiously optimistic. While short-term price action may seem volatile, the long-term outlook remains promising as Bitcoin continues to hold its ground above critical support levels.
