The flagship crypto token, bitcoin, bitcoin-breaks-through-69000-setting-new-record/” rel=”nofollow”>finally reached a new all-time high (ATH) on March 5, but quickly fell more than 10% after this price surge. As this market analyst explains, this strong correction was to be expected and could become the norm for the market. bitcoin-bull-market-glassnode/” rel=”nofollow”>bull market.
“Bull markets are not in a straight line”
crypto/” rel=”nofollow”>Alex ThornHead of Research at Galaxy Digital, marked with an X (formerly Twitter) mail that the market does not rise freely, even in a bull market, and corrections are to be expected. He alluded to the bitcoin-bull-buyers-finally-break-even/” rel=”nofollow”>running of the bulls 2021where bitcoin experienced around 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 when bitcoin experienced 13 drops of 12% or more. Therefore, what happened recently with bitcoin is not unusual and more corrections are likely to follow as the crypto token hits new highs on its way to the top of this market cycle.
Meanwhile, as revealed According to Thorn, something similar happened in December 2020 when btc touched its previous ATH of $20,000, 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 its gains so far this year.
Also, it's worth mentioning that bitcoin has been booming since late last year (just before the bitcoin-spot-etf-100-volume/” rel=”nofollow”>bitcoin Spot ETF were approved) and has not decreased since then. Therefore, it appears that a significant pullback for the flagship crypto token is long overdue.
bitcoin expected to make profits
Cryptoanalyst Guy Turner suggested in a x publication that profit-taking could have been the cause of the pullback and that more profit-taking is likely. It was to be expected that investors would aggressively take profits considering that bitcoin hit a new ATH, ultimately causing all wallets containing the crypto token to make profits.
Turner also noted that these corrections are healthy for a long-term sustainable market. It also allows investors to position themselves and accumulate more btc during the dip. The silver lining is that the bull market is all but confirmed, with bitcoin hitting a new ATH. According crypto analyst Ali MartínezThis cycle is expected to continue until October 2025.
At the time of writing, bitcoin is trading at around $65,900, down more than 2% in the last 24 hours, according to bitcoin/” rel=”nofollow”>data from CoinMarketCap.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/03/Why-did-Bitcoin-price-crash-10-after-hitting-all-time-high" alt="Tradingview.com bitcoin Price Chart” width=”3286″ height=”1530″ loading=”lazy”/>
btc recovers from flash crash | Source: BTCUSD on Tradingview.com
Featured image from BBC, chart from Tradingview.com
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