- An analyst has warned that a Bitcoin pullback of up to 30% could be on the horizon.
- This comes despite the strong bullish sentiment and expectations of a continued rally.
As a seasoned analyst with over two decades of experience in various financial markets, I’ve seen my fair share of bull runs and market corrections. The current Bitcoin rally is nothing if not impressive, but it’s important to remember that even the mightiest bulls need a rest sometimes.
Over the last few weeks, Bitcoin (BTC) has demonstrated impressive resilience, experiencing a significant increase of around 39.51%, which has boosted its total market capitalization to an astounding $1.85 trillion.
However, the past 24 hours have seen a 5.15% decline, signaling a potential pause in the uptrend.
Although this dip might signal a necessary adjustment, the underlying positive factors continue to hold strong. Bitcoin might regain its pace and carry on ascending following this phase of stabilization.
Potential BTC correction?
As a crypto investor, I’ve taken note of the warning from analyst King Young Ji – he suggests that Bitcoin (BTC) might experience a substantial correction before it continues its upward trend.
“Even in a parabolic bull run, Bitcoin can see -30% pullbacks”
He noted, referencing historical data to back his claim.
He highlighted Bitcoin’s price increase during the 2021 bull market, which saw prices climb from $17,000 to $64,000. However, even with this powerful surge, Bitcoin underwent five significant price drops.
In brief periods, the smallest fluctuation was a 10% increase, whereas the highest peaked at 28%. This underscores the unpredictable nature of even optimistic market trends.
According to his assessment, the ongoing surge in Bitcoin’s price might be followed by a similar downturn. These temporary declines, though worrying, are typical during a robust market process and frequently precede additional growth.
However, the analyst advises caution as the market navigates this phase.
Transaction volume and active address surge
Bitcoin’s network energy is picking up speed, showing significant growth in transaction numbers and active wallets – two crucial signs that could signal an upcoming surge.
The number of active addresses has reached an impressive 1,276,535 – a figure not seen since May. Moreover, this increase correlates with a significant 56.27% spike in transaction volume, suggesting that there might be a growing positive trend or bullish sentiment developing.
Over the previous 24 hours, active Bitcoin addresses have been determined by considering transactions involving distinct digital wallets, whether they were sending or receiving coins.
Yesterday saw a significant drop in Bitcoin’s token transfer volume, but today there’s been a noticeable surge. Over a million dollars’ worth of Bitcoin transactions have taken place, indicating increased investor engagement.
If this upward trend continues, Bitcoin could regain momentum and move higher in the days ahead.
Exchange reserves slide further
The amount of Bitcoins kept on various trading platforms, known as the Bitcoin exchange reserves, has persisted in decreasing.
Over the last week, reserves have decreased by 2.75%. Currently, there are approximately 2,507,706 Bitcoins in circulation on exchanges as we speak, and this downward trend seems to be continuing without any indication of slowing.
A reduction like this often indicates that Bitcoin users are transferring their BTC into personal wallets they manage themselves, valuing the autonomy over their investments more highly.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
As a crypto investor, I frequently observe that my actions tend to line up with a long-term positive outlook, as I choose to hold onto my investments rather than flood the market by selling or trading. This action, in turn, can potentially decrease the supply available for trading, which might signal optimism and faith in the future growth of the crypto market.
If this pattern continues, it may strengthen a positive viewpoint towards Bitcoin, possibly causing its value to increase more significantly as the quantity of Bitcoin on exchanges decreases even more.
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2024-11-27 02:32