The cryptocurrency market has recently undergone a correction, with Bitcoin at the forefront. A recent report indicates that realized losses have gone beyond the weekly average, hinting that this correction might be coming to a close. With Bitcoin now priced at $98,600, is it time to move on from this downward trend?
Bitcoin has experienced a significant decline, dropping over 15% from its peak. Analysts anticipated this drop after Bitcoin reached a record high of $107,600, viewing it as a normal and necessary adjustment for the market.
On December 20th, Bitcoin's price fell below $93,000, indicating that the correction was nearly finished, according to Captain Faibik. He attributes this decline to a strong bearish divergence between Bitcoin's price and the Relative Strength Index (RSI), typically followed by a 8-10% dip, which is seen as a healthy correction.
Despite Bitcoin's realized losses totaling $28.9 million in the past five days, which is 320% higher than the weekly average for 2024, this correction still offered a chance to purchase Bitcoin at a lower price before a potential market upturn.
Historically, each Bitcoin correction has been succeeded by a phase of notable growth. Bitcoin's current price of $98,600 could suggest the conclusion of this correction. However, analysts urge caution, as future price movements will hinge on market stability and investor behavior. Volatility remains a critical element to monitor.
In summary, while the recent Bitcoin correction may have seemed concerning, it also created opportunities for shrewd investors. Bitcoin has resumed its upward trend, and analysts maintain a positive outlook for Bitcoin's future, forecasting new highs in 2025.