As we know, Bitcoin’s [BTC] price increased by around 43% over the past week from $9,234 to $13,744 according to CoinMarketCap. It was an incredible sign for BTC’s current bull market until yesterday when it fell by 5.88% within an hour. While it further dipped by 9.55% over the past 24 hours.
In a community that develops FUD rather quickly when it comes to Bitcoin and altcoins, people have started to develop skepticism towards the current bull run of the largest crypto asset. Especially since a lot of people were speculating about the current Bitcoin bull run being fueled by a Tether pump.
However, price corrections are to be expected in a bull market. This current correction can be associated with the bullish exhaustion or in more colloquial terms a buyer exhaustion. [Source].
Price corrections are a sign of good health!
A price correction gives more time for the over-valued asset to reconsider its current trading price and also gives the opportunity for new buyers to enter into the market. Bull runs with no or lesser price corrections are a sign of an immature market while corrections simply denote the maturity of an asset and its not overvalued by the investors.
Speculators and traders expect the price to rise, given the maturity of the market this time around. Also since Bitcoin’s halving is just a year away, speculators suggest that the price to rise dramatically, even as high as $100,000 in the current bull run. The market is predicted to overcome the bullish exhaustion once retail investors come in, like they did during the 2017 bull run due to FOMO.
Simon Peters, an analyst at eToro, estimates that the bitcoin price could hit new all-time highs in a matter of two weeks at the most. In an email to CCN Peter wrote,
“If the price of Bitcoin maintains its current parabolic trajectory, partly stoked by Facebook’s foray into the world of cryptoassets, it could reach the all-time high of $20,000 within the next 7-14 days. This was the approximate timeframe to reach $20,000 from the last time we were at $11,800.”