BTC Wires

Bitcoin’s Market Correction Was On The Cards, After it Breached $8,000

Bitcoin’s massive bullish run finally came to a halt on May 17th with a massive sell-off taking the prices of the pioneer below $7,000. The crypto market was quite bullish up until yesterday, with most of the cryptocurrencies reaching their 10-month highs. With the downfall in prices, the crypto market is again rife with the bottom debate.

During the recent massive price rally which went on for almost a month and a half, starting from April 2nd, there were many analysts who were quite certain that the recent bullish trends were short-term, and the crypto market would see another bottom before the bulls take charge towards the end of the year. However, there were also a few analysts who predicted that the market has already seen the bottom and we are in the bull run.

The reason for those who believed that the bulls have already taken charge were various key metrics which suggested the same, be it the total trading volume, the overall market capitalization, and the price charts mimicking the same order as the 2017 peak markets.

Bitcoin Price Rally May Slow Down

Bitcoin started a massive price rally on April 2nd adding more than 30 percent to its overall value within weeks of the bullish trends. Bitcoin faced strong resistance at $5,400 and then at $6,000, but once it crossed the $6k mark it breached through $7k and $8k in a matter of a couple of days. However, after reaching the $8k mark, it faced a massive sell-off triggering the prices of Bitcoin to tumble by a massive $1000 in a matter of few hours, which was probably initiated due to a whale selling around $26 million worth of Bitcoin on BitStamp.

Per Tuur Demeester, a partner at Adamant Capital suggest that the recent price rally was an expansion phase where Bitcoin is getting out of the longest bear market, and now it is “reaccumulation” phase which is just above the bear markets. Tour predicts that Bitcoin would now remain in the $6,000-$10,000 phase for the most part of the year, and the bulls would take complete control once the block reward halvening takes place next year.