Bitcoin has fallen more than 15% from its mid-March highs to a 10-day low of less than $62,000 on Monday morning.
On April 28th, the analyst feed “Stock Money Lizards” pointed out that although the halving period is over, Bitcoin still continues to draw a red candle.
They said we're not at the end of the bull market, but added a gloomy prediction that what we're seeing is a continuation of the correction, with prices likely to return to $50,000 before continuing. I did.
“Some call this the triple top, some call it the Wyckoff distribution. Bitcoin is in correction mode.”
Even though the halving is over, Bitcoin continues to print red candlesticks. Is this the end of this cycle?
Many people are feeling anxious, especially considering the geopolitical and macroeconomic situation
Let's take a look at some charts and indicators.
— Stock Money Lizard (@StockmoneyL) April 27, 2024
More pain before profit
Essentially, a correction is needed after six months of solid gains. War, recession concerns, inflation, and a decline in ETF purchases are further deteriorating market sentiment.
Analysts noted that there are several tiers of support at $60,000, $56,000, and $52,000, each of which would become more likely if the tiers above break down.
The short-term outlook for May, a historically neutral month, could be an upward trend within the correction range. “If market conditions remain stable, even a breakout seems possible,” they said, before adding, “Of course, any bad news could push us towards $50,000. ” he added.
The Fed will make its interest rate decisions this week, but given the higher-than-expected inflation outlook, rates are likely to remain where they are. This could accelerate the market correction and push BTC below the immediate support level of $60,000.
Trader “CrypNuevo” advised He said he will be cautious next week and does not intend to come in with an open position. “Rising inflation weakening the economy? This is the worst outcome for the Fed,” they added.
good side
Although short-term sentiment is generally gloomy, things aren't too bad, according to Glassnode analyst Checkmatey.
He observed that retail Bitcoin holders are “obviously perverts who sell quickly at the first sign of a correction” and appear to be accumulating Bitcoin again.
According to Glassnode data, Shrimp accounts with less than 1 BTC accumulate 12,200 coins each month.
Corrections are a healthy part of market cycles and always create opportunities to buy on the edge. However, it remains to be seen how deep and how long the current correction will last.
