The flagship crypto token, Bitcoin, finally reaching a new all-time high (ATH) on March 5, but quickly fell by more than 10% after this price increase. As this market analyst explained, this sharp correction was expected and could become a norm moving forward bull market.
“Bull markets don’t go straight up”
Alex Doornhead of research at Galaxy Digital, listed in an X (formerly Twitter) after that the market does not move upwards unhindered, even in a bull market, and that corrections are to be expected. He alluded to the Bull Run 2021where Bitcoin experienced approximately 13 corrections of 10% or more between 2020 and the peak when the crypto token reached its previous ATH.
Thorn also referenced the 2017 bull run, noting that the same thing happened then when Bitcoin experienced 13 declines of 12% or more. Therefore, what happened recently with Bitcoin is not unusual, and more corrections are likely to occur as the crypto token reaches new highs on its way to the peak of this market cycle.
Meanwhile, if revealed by Thorn something similar happened in December 2020 when BTC hit its previous ATH of $20,000 and then traded 11.3% lower over the next 15 days before “definitively” breaking its ATH. If the same thing happens now, the analyst believes it could be good for Bitcoin, stating that “some consolidation would be healthy” after the gains this year.
Moreover, it is worth noting that Bitcoin has been on the run since late last year (right before the stock market). Discover Bitcoin ETFs approved) and has not slowed down since. Therefore, a significant pullback for the flagship crypto token seems long overdue.
Profit taking is expected for Bitcoin
Crypto analyst Guy Turner presented in one X message that profit-taking may have been the cause of the decline and that further profit-taking is likely to occur. Investors aggressively taking profits was to be expected, as Bitcoin by reaching a new ATH ultimately put all wallets holding the crypto token in profit.
Turner also noted that these corrections are healthy for a sustainable long-term market. It also allows investors to position themselves collect more BTC during the dip. On the upside, the bull market is all but confirmed, with Bitcoin hitting a new ATH. According to crypto analyst Ali MartinezThis cycle is expected to continue until sometime in October 2025.
At the time of writing, Bitcoin is trading around $65,900, down more than 2% in the past 24 hours. facts from CoinMarketCap.
BTC recovers from flash crash | Source: BTCUSD on Tradingview.com
Featured image from BBC, chart from Tradingview.com
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