Bitcoin price started to decline again in trading on Monday. Analysts predict more pain as the correction deepens.
“Bitcoin is in correction mode!”
cryptokoin.comAs you follow from , Bitcoin is down over 15% from its peak in mid-March. In the process, it visited below $62,000 on Monday morning. Thus, it reached its lowest level in the last ten days. An analyst with the pseudonym Stockmoney Lizards states that the halving is over, but Bitcoin continues to print red candles. The analyst says we are not at the end of the bull market. However, he is talking about a correction that could send the BTC price back to $50,000 before the bulls continue. In this context, the analyst says:
Call it a triple top, call it a Wyckoff distribution. BTC is in correction mode. Bitcoin halving is complete and yet Bitcoin continues to print red candles. That’s it for this cycle? Many people are distrustful, especially in light of the geopolitical and macroeconomic situation. Now let’s take a look at some charts and indicators.
There will be more pain before the gain: $50 thousand
According to the analyst, a correction is necessary after half a year of solid gains. War, recession fears, inflation and declining ETF purchases contribute to market sentiment. Analysts say there are several layers of support near the $60,000, $56,000, and $52,000 levels. They also note that each one becomes more likely if the one above it breaks.
The short-term outlook for May, a historically neutral month, is for a potential uptrend within a correction range. The analyst said, “Even a breakout seems possible if market conditions remain stable. Bad news will of course push BTC towards 50 thousand dollars.” says.
It’s good to be alert for Bitcoin this week!
Meanwhile, this week the Federal Reserve will make its interest rate decision. Rates are likely to remain where they are, given the outlook for higher-than-expected inflation. According to analysts, this situation is likely to accelerate the correction in the market. It is possible for this to drop BTC below the nearest support level of $60,000.
That’s why the analyst nicknamed ‘CrypNuevo’ recommends caution this week. He states that he will not enter with any open positions. In this context, the analyst said, “Is it the weakening economy with rising inflation? “Worst outcome for the Fed,” he says.
What’s on the positive side?
Although the short-term outlook is gloomy, things are not that bad according to Glassnode analyst “Checkmatey”. The analyst says Bitcoin individual holders appear to be accumulating ‘puts’ once again, seemingly set to sell at the first sign of a correction. According to Glassnode data, “shrimp” accounts with less than 1 BTC accumulated 12,200 coins per month.
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