Bitcoin price continues its corrective plunge leading many to panic-sell.
One analyst shares a detailed post reminding traders of the bigger picture.
He concludes saying that the bull run is not over, just taking a breather.
The crypto market has been rattled as Bitcoin (BTC) plunged from $108,000 to $96,000 within 48 hours, leading to widespread panic-selling. However, analysts argue that this dip is not the end of the bull run but rather a healthy consolidation within an ongoing upward trend. To break it down, one analyst shares his thoughts on what remains important.
End of the Crypto Bull Run?
https://twitter.com/VirtualBacon0x/status/1869902802929033221
To begin, he states that Bitcoin has experienced a 10% decline after a remarkable 54% rally over 40 days, a move many see as a natural correction. Historical patterns suggest that such pullbacks often pave the way for new highs. Key support levels remain intact, with the weekly 21 EMA at $79,000 and the daily 200 EMA at $73,000, indicating the bull market structure is still solid.
Furthermore, market jitters were exacerbated by Federal Reserve announcements. While FED Chair Jerome Powell stated that the FED is not allowed to hold Bitcoin, many took this as a bearish point of view. Meanwhile, the U.S. economy continues to show resilience, with unemployment dropping to 4.1% and inflation at 2.75%, slightly above the FED’s target.
The FED’s gradual approach to rate cuts and slowing of quantitative tightening (QT) suggests that stability will return in the near future, potentially igniting another crypto rally. Analysts expect Bitcoin to consolidate around current levels, with the next major price surge anticipated once QE resumes.
Crypto Bull Run Far From Over
Altcoins, however, remain highly volatile, experiencing steeper declines than Bitcoin during the recent correction, leading new traders to contemplate selling or holding while seasoned traders continue to accumulate. Investors are advised to focus on high-conviction projects and avoid leverage during this period of uncertainty.
The analyst concludes by saying that while the market stabilizes, patience is key. Historical trends show the biggest gains come during uncertain times like these. With key Federal Reserve meetings scheduled for early 2025, the crypto market’s next big move could align with policy changes. Lastly, he says that for now, the bull run isn’t over—it’s just taking a breather.
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