Recent trends in the Bitcoin market have shown a significant flushing out of leverage, a process commented on by prominent crypto analyst Willy Woo.
While this corrective phase has seen Bitcoin’s price fall to as low as $58,000 yesterday, it has partially rebounded, currently trading around the $61,500 mark. However, the journey could be smoother, as ongoing liquidations and market adjustments pose challenges.
Analyzing The Depth Of Current Market Correction
Woo’s insights highlight that Bitcoin’s market correction hasn’t been done despite the recent recovery. Particularly, the market continues to grapple with the impact of post-halving miner capitulations and the high costs associated with mining hardware upgrades.
These factors contribute to the ongoing pressure on weaker miners, forcing them out of the market and potentially leading to further price drops.
According to Woo, while Bitcoin has slightly recovered, the overall market sentiment remains cautious. Technical indicators suggest that although Bitcoin could rebound from recent lows, there is still potential for a further drop.
Short term technicals point to a reversal playing out here.
2 hours away from a TD9 reversal on daily candles.
If this plays out, then we go into a hidden bullish divergence to correct for the overselling of the market. pic.twitter.com/TPWRhmeGYn
— Willy Woo (@woonomic) June 24, 2024
Woo predicts that Bitcoin could see a descent to $54,000 if current support levels fail. This key threshold may trigger another round of liquidations and potentially usher in a bearish phase for short-term holders.
The importance of this price level lies in its role as a demarcation line between bearish and bullish market regimes. Falling below it, especially given the current macroeconomic setup, could significantly affect Bitcoin’s price trajectory.
Bitcoin Bearish Market Ongoing, But Don’t Despair
Adding to the conversation, Billy Markus, co-creator of Dogecoin, shares a somewhat philosophical take on handling the current crypto market’s bearish phase.
He advises investors to view their crypto investments with detachment, likening it to “throwing money into a fire.” Such a mindset, he argues, could help weather the emotional rollercoaster of market ups and downs.
Meanwhile, renowned investor Robert Kiyosaki, author of “Rich Dad Poor Dad,” expressed his strategy in light of the recent downturn. Kiyosaki, a vocal supporter of Bitcoin, views the current price dip as a buying opportunity, advocating a long-term investment approach akin to Warren Buffett’s philosophy of “buy and hold on forever.”
Bitcoin is crashing. Most people should sell. I am waiting to buy more.
All markets go up and down. Many people make a lot of money “trading”
markets which means buying low and hopefully selling low. The problem with “trading” any asset is taxes, specifically “short term”…— Robert Kiyosaki (@theRealKiyosaki) June 24, 2024
Featured image created with DALL-E, Chart from TradingView