Bitcoin Holds Firm at $66.9K, Doubts Arise Over Deep Correction

The price of Bitcoin (BTC) has managed to stay slightly above its critical support level of $65,000, bolstering confidence among crypto analysts that its current price trend remains robust. Contrary to some expectations, many believe that a significant price drop is unlikely in the near term. “Bitcoin is maintaining its price so well that I don’t foresee any deep correction,” stated the pseudonymous crypto trader Yoddha to his 49,000 followers on X on May 18.

Rekt Capital, another crypto analyst, highlighted that a major correction event had already taken place. According to CoinMarketCap data, Bitcoin’s price plunged by 15%, falling from $66,421 on April 24 to $56,792 on May 2. “We’ve experienced a deep and prolonged correction. When both of these occur, it typically means the bottom is close,” Rekt noted in a recent X post.

By May 6, Bitcoin’s price had bounced back above its critical support level of $65,146, a movement some traders view as typical during bullish market runs. “Corrections during Bitcoin bull runs are often sudden and sharp, but they tend to be followed by quick recoveries,” pointed out crypto commentator Starbust in a May 18 post.

Crypto trader Mags referenced the Wall Street Cheat Sheet’s “Psychology of a Market Cycle” to suggest that Bitcoin may be entering the “belief” phase of the cycle, during which investors start to feel more optimistic about market gains. This phase marks a shift in market sentiment towards greater confidence among investors.

Analysts are keeping a close eye on Bitcoin’s price for further signs of correction, especially given the context of the recent Bitcoin halving event on April 20. Historical trends also fuel speculation: following the Bitcoin halving event in May 2020, the price surged from $9,383 to $58,958 by May 2021. This was followed by a substantial 40% correction in June 2021, with Bitcoin’s price dropping to $35,484.

Some analysts suggest that there is little point in scrutinizing Bitcoin’s price charts until it breaks past the $70,000 mark and approaches its all-time high again. This sentiment was echoed by Mati Greenspan, founder of Quantum Economics. On May 17, Greenspan told that “it’s the breakouts that are truly exciting; until then, analyzing the charts is pretty futile.”

“Forget all the short-term price action,” added the pseudonymous crypto trader PlanC, indicating a preference for focusing on long-term trends rather than being swayed by daily price movements.

While the market remains in anticipation, the general consensus among analysts and traders seems to be an optimistic one. Barring any extreme market disruptions, the belief is that Bitcoin will continue on a stable or upward trajectory, supported by strong fundamentals and historical data. As always, the crypto market remains unpredictable, but for now, confidence prevails.

Evaleen Dreher

Evaleen Dreher

10 thoughts on “Bitcoin Holds Firm at $66.9K, Doubts Arise Over Deep Correction

  1. Bitcoin’s bounce back is typical during bull runs, gotta love the quick recoveries! 🚀📊

  2. Great to see Bitcoin rebound so quickly! Can’t wait for the next moves!

  3. Optimism is contagious in the BTC community! Excited for what’s next! 😎💸

  4. So much positivity around Bitcoin’s performance, feeling super bullish!

  5. Starbust nails it! Sudden corrections followed by recoveries are just part of the BTC game! 🎢💼

  6. Mags market cycle theory sounds spot on! Buckle up for the belief phase!

  7. Exciting times ahead for Bitcoin! Maintaining over $65k shows real strength!

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