Bitcoin has declined approximately 20% over the past three months, but crypto traders are unfazed, claiming it is just a routine correction in the market cycle.
“This is the 4th 20% correction in BTC in 12 months...pretty ordinary stuff,” the CEO of Real Vision, Raoul Pal, stated in an April 30 post on X — comparing its current price level to when Bitcoin (BTC) hit its all-time high of $75,830 on March 14.
“This is exactly what the cycle needs to resynchronize with historical price norms and the traditional Halving Cycle,” pseudonymous crypto trader Rekt Capital wrote in a post on the same day.
“Price might fall to $40K, but it might rise to $400K. That’s just how it is, and it’s a great bet,” added Thomas Fahrer, the CEO of crypto-focused reviews portal Apollo.
At the time of publication, Bitcoin is trading at $59,730 after falling 6% over the past 24 hours, according to CoinMarketCap data.
Bitcoin had a brief stint below support levels, trading at $59,097, which resulted in the liquidation of $96.5 million in long positions, according to CoinGlass data.
Bitcoin’s price is “getting closer and closer to its final bottom with each additional -1% to the downside,” commented Rekt in a separate X post on the same day.
Ben Simpson, the CEO of Collective Shift, told Cointelegraph that he thinks the market may now be in a “lull period” after the recent Bitcoin halving due to a lack of new narratives for traders.
However, he remains optimistic about the market’s long-term prospects beyond the next few months.
“I believe in the next month or two we are going to see some choppiness sideways, and a continued drawdown, especially when we still have macro uncertainty, we have the rate Fed decision, the ongoing war, there is a lot of uncertainty in the market.”
Other traders have also pointed to bullish indicators forming on Bitcoin’s price chart which could signal a breakout in the next few months.
Crypto trader Gally Sama pointed out the forming cup-and-handle pattern on Bitcoin’s price chart — when the price falls and then rebounds in a u-shaped recovery, which looks like a cup — stating that the handle is forming “around or above the previous highs.”
The overall crypto market also faced widespread corrections alongside Bitcoin, with Ether (ETH) falling by 7.4%, Solana’s (SOL) dropping by 10.1% and Dogecoin (DOGE) falling by 10.1%.
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The market decline has led to a drop in overall investor confidence over the past 24 hours, according to the Fear and Greed Index.
On May 1, the index score fell to a “neutral” 54 — the lowest it has been in three months — dropping 13 points from April 30 “greed” score of 67.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.