Bitcoin’s price has cemented its position slightly above its key support level of $65,000, and crypto traders believe that its formation is holding strong. Some are even doubting the speculations of a deep correction in the near future.
“Bitcoin is holding up the price so strongly that I don’t think there will be a deep correction,” pseudonymous crypto trader Yoddha told his 49,000 X followers on May 18.
Meanwhile, pseudonymous crypto trader Rekt Capital pointed out that the significant correction event has already happened, with Bitcoin’s price falling by 15% from $66,421 on April 24 to $56,792 on May 2, as per CoinMarketCap data.
“We’ve had a deep correction, we’ve had a long correction, and when you have a mix of both, the bottom is always very close,” Rekt declared in a recent X post.
Although just four days later, on May 6, Bitcoin’s price rebounded above the critical support level at $65,146, a trend some traders view as common during bull runs.
“Normal corrections in Bitcoin bull runs are usually nukes that are sharp and quick with a quick bounce back,” crypto commentator Starbust explained in a May 18 post.
Crypto trader Mags pointed to the typical market graphics sheet, the Wall Street Cheat Sheet’s “Psychology of a Market Cycle,” to point out that Bitcoin is “entering belief” phase of the cycle — where investors start to be more confident in the market gains.
Analysts and observers are closely watching Bitcoin’s price for signs of more correction, particularly since the Bitcoin halving event on April 20, drawing on past halving events as a precedent.
After the Bitcoin halving in May 2020, its price surged from $9,383 to $58,958 by May 2021. However, just a month later, it experienced a 40% correction, dropping to $35,484 in June.
Although some analysts are of the belief that there is no point scrutinizing Bitcoin’s price chart until it breaks out past $70,000 nearer to its all-time high again.
On May 17, Quantum Economics founder Mati Greenspan explained to Cointelegraph that “it’s the breakouts that are exciting, so until we have a breakout, analyzing the charts will be pretty futile.”
“Forget all the short-term price action,” added pseudonymous crypto trader PlanC.