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Bitcoin’s Resilient $66.9K Price Challenges Predictions of a Deep Correction
Despite ongoing debates among experts about the potential for a significant downturn, Bitcoin’s price stability around $66,900 is casting doubts on the imminent likelihood of a “deep correction.” According to cryptocurrency analysts, Bitcoin has solidified its position just above the crucial $65,000 support level, with many in the trading community feeling confident about its current stability.
Pseudonymous crypto trader Yoddha, with a following of 49,000 on social media, expressed on May 18 his skepticism regarding a severe price drop. “Bitcoin is holding up the price so strongly that I don’t think there will be a deep correction anytime soon,” Yoddha stated.
Conversely, another pseudonymous trader, Rekt Capital, referenced recent price movements as evidence that a significant correction has already occurred. He noted that Bitcoin’s price dropped 15% from $66,421 on April 24 to $56,792 on May 2, according to CoinMarketCap. “We’ve had a deep correction; we’ve had a long correction. When you have a mix of both, the bottom is typically very close,” Rekt Capital mentioned in a recent social media update.
The price of Bitcoin saw a noteworthy recovery on May 6, surging back above the critical $65,146 support level—a pattern often observed during bull markets. “Normal corrections in Bitcoin bull runs are usually sharp and quick with a rapid recovery,” stated crypto commentator Starbust in a post dated May 18.
Adding to the analysis, crypto trader Mags referred to the Wall Street Cheat Sheet’s “Psychology of a Market Cycle,” suggesting that Bitcoin is now in the “belief” phase, where confidence in continued market gains begins to solidify.
Market analysts continue to monitor Bitcoin’s price trajectory closely, especially in the wake of the Bitcoin halving event on April 20, drawing comparisons with past cycles for insight. Following the May 2020 halving, Bitcoin’s price soared from $9,383 to $58,958 by May 2021, only to see a 40% correction a month later.
Amidst this backdrop, some experts argue that dissecting Bitcoin’s price action is premature until it breaks past the $70,000 mark and approaches its historical peak. Mati Greenspan, founder of Quantum Economics, told Cointelegraph on May 17, “It’s the breakouts that are exciting, so until we have a breakout, analyzing the charts will be pretty futile.”
In summary, while short-term price action continues to be a topic of debate, the broader consensus among traders and analysts points towards a cautious optimism, pending any major market movements.
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