Bitcoin’s price has cemented its position slightly above its key support level of $65,000, and crypto traders believe that its formation is holding strong. Some are even doubting the speculations of a deep correction in the near future.
“Bitcoin is holding up the price so strongly that I don’t think there will be a deep correction,” pseudonymous crypto trader Yoddha told his 49,000 X followers on May 18.
Meanwhile, pseudonymous crypto trader Rekt Capital pointed out that the significant correction event has already happened, with Bitcoin’s price falling by 15% from $66,421 on April 24 to $56,792 on May 2, as per CoinMarketCap data.
“We’ve had a deep correction, we’ve had a long correction, and when you have a mix of both, the bottom is always very close,” Rekt declared in a recent X post.
Bitcoin is up 8.95% over the past 30 days. Source: CoinMarketCap
Although just four days later, on May 6, Bitcoin’s price rebounded above the critical support level at $65,146, a trend some traders view as common during bull runs.
“Normal corrections in Bitcoin bull runs are usually nukes that are sharp and quick with a quick bounce back,” crypto commentator Starbust explained in a May 18 post.
Crypto trader Mags pointed to the typical market graphics sheet, the Wall Street Cheat Sheet’s “Psychology of a Market Cycle,” to point out that Bitcoin is “entering belief” phase of the cycle — where investors start to be more confident in the market gains.
Source: Mags
Analysts and observers are closely watching Bitcoin’s price for signs of more correction, particularly since the Bitcoin halving event on April 20, drawing on past halving events as a precedent.
After the Bitcoin halving in May 2020, its price surged from $9,383 to $58,958 by May 2021. However, just a month later, it experienced a 40% correction, dropping to $35,484 in June.
Although some analysts are of the belief that there is no point scrutinizing Bitcoin’s price chart until it breaks out past $70,000 nearer to its all-time high again.
On May 17, Quantum Economics founder Mati Greenspan explained to Cointelegraph that “it’s the breakouts that are exciting, so until we have a breakout, analyzing the charts will be pretty futile.”
“Forget all the short-term price action,” added pseudonymous crypto trader PlanC.
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