Recent trends in the bitcoin market have shown a significant de-leveraging, a process x.com/woonomic/status/1805358677391495222″ target=”_blank”>commented by prominent crypto analyst Willy Woo.
While this corrective phase caused the price of bitcoin to fall as low as $58,000 yesterday, it has partially recovered, currently trading around the $61,500 mark. However, the path could be easier, as ongoing sell-offs and market adjustments pose challenges.
Analysis of the depth of the current market correction
Woo's observations highlight that the bitcoin market correction has not occurred despite the recent recovery. In particular, the market continues to grapple with the impact of post-halving miner capitulations and high costs associated with mining hardware upgrades.
These factors contribute to the current pressure on weaker miners, forcing them out of the market and potentially causing further price declines.
According to Woo, although bitcoin has recovered slightly, the overall market sentiment remains cautious. Technical indicators suggest that although bitcoin could recover from recent lows, there is still a possibility of a further decline.
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Short-term technicals point to a reversal occurring here.
2 hours away from a TD9 reversal on the daily candlesticks.
If this is true, we will enter a hidden bullish divergence to correct the oversold market. pic.twitter.com/TPWRhmeGYn
— Willy Woo (@woonomic) twitter.com/woonomic/status/1805358683997516012?ref_src=twsrc%5Etfw” target=”_blank”>June 24, 2024
Woo predicts that bitcoin could see a decline to $54,000 if current support levels fail. This key threshold may trigger another round of sell-offs 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 that level, especially given the current macroeconomic setup, could significantly impact bitcoin's price trajectory.
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bitcoin Bear Market Continues, But Don't Despair
Joining the conversation, Billy Markus, co-creator of Dogecoin, shares a somewhat philosophical view on handling the current bearish phase of the crypto market.
He x.com/BillyM2k/status/1805368672753696987″ target=”_blank”>advise Investors should view their cryptocurrency investments impartially, likening them to “throwing money on a fire.” He maintains that mindset could help weather the emotional rollercoaster of the market's ups and downs.
Meanwhile, renowned investor Robert Kiyosaki, author of “Rich Dad, Poor Dad,” twitter.com/theRealKiyosaki/status/1805259580835799500?ref_src=twsrc%5Etfw” target=”_blank”>voiced its strategy in light of the recent crisis. Kiyosaki, a strong supporter of bitcoin, sees the current price decline as a buying opportunity and advocates a long-term investment approach similar to Warren Buffett's “buy and hold forever” philosophy.
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bitcoin is collapsing. Most people should sell. I'm waiting to buy more. All markets go up and down. Many people make a lot of money by “trading” markets, which means buying low and, hopefully, selling low. The problem with “trading” any asset is taxes, specifically “short-term” ones…
—Robert Kiyosaki (@theRealKiyosaki) twitter.com/theRealKiyosaki/status/1805259580835799500?ref_src=twsrc%5Etfw” target=”_blank”>June 24, 2024
Featured image created with DALL-E, TradingView chart
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