At the time this article was written, Bitcoin was trading around $42,200, showing signs of weakness. A lack of demand and concerns over a potential increase in volatility this week dragged the market down with sell-offs. However, a popular crypto analyst is saying quite the opposite of the general opinion.
Crypto Commentator’s Prediction
Bitcoin’s price, which fell by 7%, wiped out the gains of the last week. Altcoins followed its path and experienced larger double-digit losses. The general consensus among analysts is that such a correction should not come as a surprise after a steady two-month rally. Experts like RektCapital and Capo might be expecting deeper lows, but we’ve seen them being wrong at extreme levels for a long time. The same could happen again.
A crypto analyst and the co-founder of Reflexivity Research argued that this pullback was necessary to balance high leverage positions. According to him, weak hands need to be shaken out while the uptrend continues. Indeed, we clearly saw this happening since the reversal at $15,500.
Altcoin Bull Coming
Crypto analyst Remen was confident that the ongoing correction would push altcoins into a major bull wave. The analyst, who says that it’s becoming harder for Bitcoin to continue its uptrend as Bitcoin dominance reaches its peak, argues that the real movement should now start on the altcoin front.
The drop that started today cleared $400 million in leveraged positions, and Bitcoin continues to linger at $42,000. Most analysts claim that closures under $42,450 and $43,000 will now determine the local peak and that Bitcoin will not be able to cross this threshold for some time (perhaps for weeks, even months).
The BTC rise that started in October brought a rally of $10,000 last month. But it is also normal for rapid rises to need a breather at some point.
On the other hand, another popular analyst, Hitesh, says that the last six months’ movement indicates a breakout. The price, which increased by 50% after the breakout at the end of October, rallied along with addresses with a balance of over 1 BTC. Moreover, on-chain data shows that whale accumulation was also steadily continuing during the same period. All these suggest that the growing optimism for 2024 is not just a FOMO but a long-term and perhaps a path to a new all-time high (ATH).
