Bitcoin’s face-melting rally could be coming to an end as analysts weigh a potential market correction. However, most agree that momentum and sentiment are positive and the trend is upward.
On December 5, Glassnode analyst “Checkmate” said of a potential market decline, “I would be surprised if Bitcoin does not consolidate (or) correct in the near term.”
Is a cryptocurrency fix imminent?
The analyst added that a break of a few months “may allow investors’ cost bases to re-adjust to above actual market average prices.”
He also said the market had not returned more than 20% so far this year, which he said “signifies continued strong spot demand.”
Previous bull markets have seen declines exceeding 60%, but this has not happened yet in this bull market.
It is important to note that this is a bull market correction and not a bear market bottom. This is often a drop of more than 80% from previous highs.
JRNY Crypto reminded his 767K X followers of the big selloff/correction before the last bull market.
“Things are moving fast in the cryptocurrency market right now, but keep in mind that there was a similar situation in 2019, followed by the worst crash I have ever seen, right before the last Bitcoin halving.”
Read more: 9 Best AI Cryptocurrency Trading Bots to Maximize Your Profits
However, the major crash mentioned was due to a black swan event caused by the global market crash and the Covid lockdown in March 2020.
“I wouldn’t be surprised if we see at least one more market correction before a true bull market begins,” he added.
This time around, there are a lot of geopolitical tensions and economic uncertainties to deal with, so the bulls may not be ready to take the plunge just yet.
Trader Justin Bennett concluded that the last two bear markets ended with a second capitulation. “Don’t rule out $25,000 of liquidity,” he added.
Retreat’s Market
Bitcoin held steady at $41,600 today, not rising any further. As a result, total capital remained at approximately $1.61 trillion.
However, altcoins are already on the decline and most are in the red during Tuesday’s Asian trading session.
On this day, most high-value altcoins fell between 1 and 3%. Nonetheless, some were hit harder, with Solana down 7.2% and Chainlink down 5.8%.
Moreover, altcoin markets lagged Bitcoin during this rally, reaching resistance only after 18 months of consolidation.
Read more: Top 9 Cryptocurrency-related Telegram Channels in 2023
disclaimer
In compliance with Trust Project guidelines, BeInCrypto is committed to unbiased and transparent reporting. These news articles aim to provide accurate and timely information. However, before making any decisions based on this content, readers are encouraged to check the facts and consult with experts.