Amid price lows, Bitcoin correction seen as healthy and temporary
With Bitcoin trading under the $34,000 mark at press time, analysts at Fundstrat Global shed new light on the asset’s current price movement. According to David Grider at Fundstrat, BTC’s recent lows mean a temporary and healthy correction before prices resume to main market trends.
Soon after BTC surged to $40,000, experts in the field had predicted an incoming wave of correction as well. On Monday, 11 January, Bitcoin was down by roughly 20% by the end of the day. This could have been due to several negative news, in the weeks following the ATH.
Recently, UK FCA warned investors against crypto-related investment risks and scams. Prior to this, data revealed a surge in the digital asset’s liquidation almost in less than 24 hours. Another primary trigger of the price crash can also be attributed to HSBC’s refusal to service crypto-focused entities.
However, the digital asset is now trading hands at levels close to $35,000 and has been up by 2.7% in the last 24hours.
Even Fundstrat’s lead digital strategist thinks such a “pullback is healthy” and that the rally will continue onward. Several bullish traders continue to believe in Bitcoin’s potential to surge toward higher figures. Especially amid the US dollar’s weakness and growing institutional demand.
Recently, analysts at Glassnode stated that Bitcoin has reached a crucially bullish threshold. Some execs have been optimistic with regard to the asset’s prices. Morgan Creek Digital’s Anthony Pompliano predicted that Bitcoin will breach the $1M price level. Highlighting the cryptocurrency’s restricted supply and favorable market demand, Raoul Pal estimated that Bitcoin would soar to $1 million in roughly five years’ time.
However, critic Peter Schiff has not held back from referring to Bitcoin as a bubble as well as a Pyramid scheme. Whereas Israeli entrepreneur Uri Levine who co-founded Waze, was also bearish on cryptocurrencies, claiming that Bitcoin is only useful for criminals.