Crypto Rand, a renowned crypto trader, has shared insights on the current market corrections and emphasizes the necessity of these corrections for sustainable market growth.
The trader, spreading his view on
This perspective comes at a time when most crypto assets, including Bitcoin, have experienced significant price declines in recent days.
Navigating resistance levels: the path to growth
Crypto Rand used the price action index of several cryptocurrencies such as Cosmos (ATOM), Chainlink (LINK), NEAR Protocol (NEAR), Algorand (ALGO), and MultiversX (EGLD), among others, to emphasize its point.
Rand identifies multiple resistance levels in the trajectories of these assets, suggesting these are potential points for a market reversal. These resistance levels are categorized as major or minor depending on the frequency and intensity of price action historically observed at these points.
Despite the temporary pullbacks that these resistance levels could cause, Crypto Rand views them as necessary pauses that allow the market to gather strength for future upward moves.
This perspective is especially relevant in light of Bitcoin’s recent price behavior. The flagship cryptocurrency has seen a notable dip from its recent high of $44,000, and is currently trading just below $42,000.
This downward trend has resonated in the crypto market and has affected other major assets like Ethereum, including altcoins Rand mentioned such as Chainlink, and Algorand.
Over the past seven days, BTC and ETH have experienced a decline of 4.4% and 2% respectively. Meanwhile, Chainlink has seen a decline of 6.9% over the same period, and Algorand is down 4.1% in the past 24 hours.
Always be prepared for more shakeouts, but remember that these corrections are necessary for healthy growth.
For example, the midcaps were rejected due to the main resistance, but the overall macro structure remains intact.
⚡️ INDEXED: $ATOM, $LINK, $NEARBY, $ALGO, $EGLD and more. pic.twitter.com/YKUhwyRM9C
— Crypto Rand (@crypto_rand) December 13, 2023
The broader perspective on crypto market corrections
The sentiment that market corrections are a healthy and necessary aspect of growth is not exclusive to Crypto Rand. William Clemente, co-founder of Reflexivity Research, echoes this view.
Clemente argues that the current market pullback, which could potentially push Bitcoin’s price closer to $40,000, should be “no cause for alarm.”
Clemente argues that this process is critical to eliminating weaker market participants and reducing excess debt, ultimately laying a stronger foundation for future upward trends.
Clemente further articulates that Bitcoin’s inherent volatility should be seen as “a feature, not a bug.” It is worth noting that this stance reinforces the idea that the crypto market is still evolving and that such fluctuations are an essential part of the journey to maturity.
BTC has doubled in two months without any pullback; a correction is not that surprising.
Corrections shake out ‘weak hands’ and leverage, creating a stronger foundation for any higher moves.
Bitcoin’s volatility is a feature, not a bug.
Chilling with the lever 🫡 https://t.co/BdvvS8KDZU
— Will (@WClementeIII) December 11, 2023
Featured image from iStock, Chart from TradingView
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