The price of Bitcoin (BTC) has solidified its position above the crucial support level of $66,000, leading some crypto traders to express confidence and optimism about BTC. Some even cast doubt on an imminent deep correction, proclaiming that a local bottom has already been formed. BTC is currently trading at $67,188, gaining 10.2% over the past 7 days and 4.73% over the past 30 days.
Pseudonymous trader, Rekt Capital, observed that BTC has already experienced a deep and prolonged correction, and the market is likely approaching its bottom. According to CoinMarketCap data, Bitcoin’s price dropped by 15% from $66,421 on April 24 to $56,792 on May 2. However, just four days after the dip, Bitcoin’s price rebounded above the critical support level at $65,146. This pattern is seen as common during bull runs, where sudden and sharp corrections are followed by quick recoveries.
Crypto trader Mags referred to the “Psychology of a Market Cycle,” a popular market graphic known as the Wall Street Cheat Sheet, to suggest that Bitcoin is entering the “belief” phase of the cycle. This phase is characterized by investors gaining more confidence in market gains.
Analysts and observers are closely monitoring Bitcoin’s price for signs of further correction, particularly following the Bitcoin halving event on April 20. Historical halving events serve as a precedent for such analysis. After the Bitcoin halving in May 2020, the price surged from $9,383 to $58,958 by May 2021. However, a month later, it experienced a 40% correction, dropping to $35,484 in June.