Bitcoin enthusiasts brace themselves as Reflexivity Research co-founder Will Clemente predicts an impending correction in the cryptocurrency’s price. Clemente suggests a sharp downturn is on the horizon, aimed at shedding the market of overly leveraged and “greedy” investors.
This price action recently has been awesome, but friendly reminder that there will be sharp corrections along the way as the market shakes off greedy leveraged longs.
Can’t go wrong holding spot in cold storage. pic.twitter.com/JvWOE25bNi
— Will (@WClementeIII) December 5, 2023
Drawing insights from Glassnode, a blockchain data and intelligence platform, Clemente illustrates the historical trend of corrections in Bitcoin’s lifecycle. Past cycles witnessed a 36% correction in the 2015-2018 and a more substantial 62.6% drawdown during the 2019-2022 bull run.
Despite the current Bitcoin rally being in its early stages, Clemente, utilizing Glassnode’s data, reveals a 20.1% maximum drawdown. He underscores the significance of corrections, particularly during bull markets, as they pave the way for more robust upward movements. Clemente emphasizes that Bitcoin’s inherent volatility is not a drawback but a distinctive feature.
Today, Bitcoin faced a sudden and notable drop, shedding over 7% in less than three hours, according to data from TradingView. The flagship cryptocurrency commenced the trading day at $43,786 and experienced a marginal increase to $43,801, only to tumble to $40,659 swiftly.
Bitcoin: Ongoing Battle Amid Major Correction Warning
This pullback marks the most substantial correction since the initiation of the current rally, which started around $25,000 in mid-September. When writing, Bitcoin costs $42,171.97, with a 24-hour trading volume of $26,049,747,648. Reflecting an ongoing battle between bullish and bearish forces.
Clemente’s warning gains weight as market participants grapple with the reality of a potential correction. Investors keenly observe cryptocurrency’s movements, mindful of the historical context and the influence of market dynamics. The escalating battle between bulls and bears highlights the heightened uncertainty surrounding Bitcoin’s immediate trajectory.
In addition, a sense of durability is needed since their competition is in an unstable environment comprising different market rivals. The price performance of Bitcoins continues to create doubts and controversy among global investors as it is an object of keen observation.
Related Reading | South Africa Considers Local Offices for Overseas Crypto Firms
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