July 21, 2024
Altseason May Begin as Bitcoin Price Corrects, Suggests Trader
Bitcoin News

Altseason May Begin as Bitcoin Price Corrects, Suggests Trader

The price momentum for Bitcoin was initiated in October, propelling the leading cryptocurrency to notable gains of almost $10,000 in the past month.

However, on December 11, Bitcoin experienced a significant correction, plummeting by 7% and erasing the accumulated gains over the preceding seven days. This sharp correction led to Bitcoin reaching a four-month low at $41,329.

Following Bitcoin’s correction, many altcoins also witnessed a decline in prices, with several experiencing double-digit drops. Analysts and market observers interpret this recent price crash as a normal part of the ongoing market cycle. After two months of bullish activity, a correction was anticipated.

Crypto analyst Will Clemente, co-founder of Reflexivity Research, sees corrections and market volatility as mechanisms to shake out weak hands and temper the highly leveraged crypto markets. Another crypto trader, Remen, suggested in a post that the recent downturn might propel altcoins into another bull run.

He noted that Bitcoin would likely need an extended period of consolidation before resuming an uptrend, emphasizing that Bitcoin dominance has reached its peak.

The market decline on December 11 resulted in the liquidation of over $400 million in crypto-leveraged positions, providing a clearing effect. Despite this, the price of Bitcoin has since rebounded, surpassing $42,000.

The positive price momentum for Bitcoin, commencing in October, marked a substantial departure from nearly six months of sideways price action, as highlighted by crypto analyst Hitesh.eth. The on-chain data he referenced indicated continuous buying of BTC by accounts with holdings exceeding 1 BTC, and there was evidence of whale accumulation.

Institutional inflows and increased interest from financial giants, coupled with the anticipation of the first Bitcoin exchange-traded fund, set a favorable trajectory for BTC leading up to the crucial Bitcoin reward halving event in April 2024.

Image by fabrikasimf on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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