Analysts Expect Bitcoin Price Correction Before Rally

Bitcoin (BTC), the biggest cryptocurrency by market cap, has experienced a surge beyond the $52,000 level lately. This shows continuous demand for BTC at increasingly higher levels. A report from CryptoQuant, an on-chain data analytics firm, indicated that more than “75% of new investments in Bitcoin” come from spot Bitcoin exchange-traded funds (ETFs). This has fostered a bullish outlook with increased optimism around BTC’s surge to $100,000.

On the other hand, crypto experts have set a long-term target of $150,000 for Bitcoin. However, before reaching that milestone, the price is anticipated to undergo a correction of up to 40%. At press time, the BTC price was up by 1.04% to $52,449. It boasted a market cap of $1.01 trillion. Meanwhile, the 24-hour trade volume decreased by 4.95% to $21.34 billion.

Renowned cryptoanalyst Michaël van de Poppe emphasized the possibility of a 40% correction in the BTC price before it resumes its upward trend. In a recent analysis, Poppe said market sentiment often overshoots reality, resulting in exaggerated price movements.

He stated:

 “Sentiment is always a wrong indicator. Emotions always exceed reality and sentiment overshoots the price action by a mile, that’s why people start to lose money.” 

Additionally, Poppe advised investors to develop a strategic game plan based on their investment horizon and risk tolerance. He said short-term traders should be careful, especially when prices rapidly increase. A pullback is expected after Bitcoin hits between $53,000 and $58,000. On the other hand, Poppe recommended long-term investors wait for a typical 20% to 40% correction before entering the market.

Poppe also highlighted how macroeconomic events, including factors like the Consumer Price Index (CPI) data, influence Bitcoin’s price movements. He cautioned that negative macroeconomic news could quickly make the Bitcoin price bearish. According to Poppe, if macroeconomic events turn slightly negative, it will indicate an impending correction.

$46,500 Support Break Might Trigger Significant Fall

Crypto analyst Ali suggests that if BTC doesn’t surpass the $52,000 level soon, it could trigger an 8% correction that could send its price down to $48,000 or lower at $46,500. This price range indicated a strong demand zone, as more than 1 million addresses bought over 544,870 BTC, indicating significant support.

If #Bitcoin fails to quickly reclaim the $52,000 level, it might face an 8% correction, potentially dropping to between $48,000 and $46,500. At this price range, over 1 million addresses hold more than 544,870 $BTC, indicating significant support. pic.twitter.com/dY7zIqLKN2

— Ali (@ali_charts) February 17, 2024

In a recent analysis, on-chain analytics firm IntoTheBlock highlighted several key factors that might influence the BTC price in the days ahead. The BTC price is 24.78% below its record high of $69,000, achieved in November 2021. Nonetheless, there are ongoing positive catalysts in the market. Major catalysts that could drive BTC to all-time highs before the summer include ETFs, halving, and easing.

Courtesy: TradingView

Mark Yusko Predicts Bullish Future for Bitcoin

Morgan Creek Capital Management CEO Mark Yusko labels the current phase as “crypto summer.” He predicted that Bitcoin could rise to $150,000 post-halving. Moreover, Yusko believes that the digital asset’s current “fair value” is $75,000. He is confident of an ongoing bull market and sees the halving as a rally catalyst. Yusko said as the halving reduces the miners’ rewards, BTC will “go right through fair value.”

Yusko also expects a market correction and a subsequent cycle restart. He predicts a possible 90-95% drop in small-cap altcoins from their peaks. In commenting on Securities and Exchange Commission (SEC) Chairman Gary Gensler, Yusko humorously nicknamed him “Gloomy Gary.” He claimed that Gensler collaborated with Bitcoin opponents, such as Senator Elizabeth Warren. Yusko highlighted the challenges faced by disruptive technologies like Bitcoin from those with financial or political stakes by saying, “Haters are going to hate because they have a lot to lose.”