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Crypto market regulars know this: corrections, even brutal ones, are part of the game. Those who have endured the rollercoaster of Bitcoin (BTC) in recent years are not afraid of the recent drop. However, the market’s excitement has given way to a wave of panic among some traders, worried about Bitcoin falling towards 70,000 dollars. Should we be alarmed? Not really, according to several analysts, who see it as a simple breather before a strong recovery.
A Bitcoin correction to 70,000 $? Nothing unusual for a bull market
Since its last peak at 80,301 dollars, the price of Bitcoin has lost more than 14% in a week. The reason? The lack of spectacular announcements regarding massive institutional adoption has cooled some investors.
But this correction is nothing unusual in a bull market, experts remind us.
- An expected pullback: Arthur Hayes, co-founder of BitMEX, believes that Bitcoin could hit a floor around 70,000 dollars, representing a correction of 36% from its recent high. “Be patient. A 36% correction is very normal for a bull market“, he stated on X;
- A classic macroeconomic dynamic: Aurelie Barthere, an analyst at Nansen, emphasizes that the global markets and Bitcoin are in a phase of “macro correction”, a natural step in a bull cycle;
- Reassuring history: the last major wave of monetary easing, between 2020 and 2021, propelled Bitcoin from 6,000 to 69,000 dollars, representing a 1,050% increase. Central bank policies could play a similar role;
- An opportunity for investors: Iliya Kalchev, an analyst at Nexo, points out that a drop towards the 70,000 dollars zone would lay the groundwork for a stronger recovery.
So, is this just a bump or the beginning of a bear market? For BTC veterans, the answer is clear: the market is following its natural course, and corrections are the price to pay for future increases.
The crypto market in elevator mode: panic or opportunity?
The crypto market never does things halfway. After the explosion of 2023-2024, it’s time for the jolts. But for Erik, an analyst followed by thousands of traders, this pullback is a boon:
“We are close to a macro bottom, a slight pullback (5-8%) and then it will be an aggressive rise.“
So, should we see this correction as a standstill or a springboard for new highs? A few points to consider:
- Traditional markets under pressure: Hayes points out that to see a massive rebound in Bitcoin, American stocks would first need to fall. A drop in the S&P 500 could hasten favorable monetary support measures for cryptos;
- Liquidity still under scrutiny: Unlike stocks, Bitcoin does not benefit from government intervention in times of crisis. Therefore, it is more volatile but also more resilient in the long term.
- Optimistic 2025 horizon: Some analysts already predict a BTC price above 160,000 dollars by the end of next year.
With these elements in mind, the real question becomes: who will have the nerves strong enough to hold on and take advantage of the next bullish wave?
CZ from Binance reassures: no panic. HODLing remains a difficult but historically rewarding exercise. Those who know how to wait reap the rewards of their patience. It remains to be seen who will hold out until the next Bitcoin peak.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
