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Bitcoin: correction is suspicious

Bitcoin enthusiastically waited for the Coinbase listing, and then, according to the principle of “buy on rumors, sell on facts”, corrected downward. Today the price of BTCUSD has dropped even lower. Nevertheless, the zone 1048.64 – 61759, which serves as support, has not yet been broken. Therefore, on the one hand, the situation on the chart still leaves a chance for a recovery from the current values.

But there is also a suspicious signal. From the moment of reaching the historical maximum within the framework of the downward correction, there has been a downtrend of 64826.70 – 63822.28 – 61291.20 from April 14. The downlink is surprisingly technical and correct. This means that there are now all the prerequisites for the recovery to the level of 61.8 purple Fibo Expansion. If this mirrored level is confirmed as resistance, it will signal a deeper correction in Bitcoin. And so far, within the local downtrend, the target for the decline remains near $ 58,000 per coin.

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Therefore, we follow the trend 64826.70 – 63822.28 – 61291.20 from April 14. Until the price bounces down from the third point at its resistance, there is little chance that Bitcoin’s correction will be short-lived.

In the meantime, let’s digress from the local picture and look at the events on the market and the prospects for cryptocurrencies on a scale.

Analytical platform Glassnode reported that bitcoin holders began to accumulate coins after having reduced their holdings for half a year.

The so-called holders began to reduce long-term holdings of bitcoin in October last year. Then the main cryptocurrency broke the $ 12,000 mark. Coin contraction reached its maximum levels in January. And now, after six months, the holders of the cryptocurrency returned to restocking.

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This dynamic could be a sign that market participants are convinced that Bitcoin’s bullish momentum is sustainable. Therefore, you need to buy now, while bitcoin has not risen in price even more.

Market participants and various influencers are very optimistic about everything that happens in the cryptocurrency market. Forecasts of Bitcoin’s growth to at least $ 100,000 no longer look fantastic, moreover, they have a completely fundamental justification.

After the release of Coinbase on the Nasdaq on Wednesday, there was talk that this is a watershed moment for the cryptocurrency market and the perception of these coins by institutional investors.

For example, well-known crypto investor and Galaxy Digital CEO Mike Novogratz suggests that Bitcoin may well rise to $ 100,000. In 2024, the main cryptocurrency can reach 500,000. But, in the market, corrections are possible, periods of pullbacks to fix profits. And it is not at all a fact that this growth will be exponential, as in recent months.

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Novogratz notes that the cryptocurrency market is evolving, but there is still a lot of different madness on it. Especially considering the recent Dogecoin rallies and Ripple pumps. Such cases never end well, and there is a high likelihood of an early collapse after such ups.

Novogratz is one of those who believe that the Coinbase listing is a “monumental event” for the cryptocurrency industry, although all this hype and euphoria may soon roll back.

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