Bitcoin‘s recent upward momentum appears to be losing steam as the digital asset has shifted toward bearish territory, sparking speculations about upcoming price corrections. However, considering several factors and trends, these much-anticipated price pullbacks for BTC might be short-lived.
Bitcoin Likely To Recover Swiftly From Any Correction
Delving into Bitcoin’s price dynamics and developments, Santiment, a market intelligence and on-chain data platform, has asserted that any price correction in the current Bitcoin market cycle is probably going to be short-lived.
This prediction reflects Bitcoin’s resilience despite recent declines, driven by robust interest among institutional investors, which could help prevent extended downturns, providing a solid foundation that may cause a swift recovery. It could also fuel optimism among these investors as they may see the impending price corrections as opportunities to sharpen up their portfolios ahead of BTC’s next upsurge.
The platform’s prognosis comes in light of Bitcoin opening the week with a mild retrace below the $95,000 level, which has triggered uncertainty within the community, particularly among small investors. However, large investors such as whales and sharks are still maintaining a positive sentiment as they continue to accumulate BTC in huge quantities.
Data from Santiment shows that whale and shark wallet addresses holding at least 10 BTC have amassed about 63,622 more BTC, valued at a whopping $6.06 billion in November alone, indicating confidence among institutional investors in BTC’s potential for long-term growth.
As a result, the platform is confident that any price decline might be brief as long as there is still a solid positive argument and large investors keep moving their holdings in the right direction.
Thus far, with Bitcoin’s price currently demonstrating a negative performance, traders and investors are closely watching for signs of an extended downswing to re-evaluate their positions to cut further losses.
Multiple Price Corrections Ahead For BTC?
Although a retrace for BTC could be short-lived, the digital asset might be faced with multiple pullbacks in the near term, as predicted by Kevin, a market expert and trader, who foresees about three potential corrections based on historical trends.
Kevin highlighted that during the 2017 bull run after BTC went into price discovery, it underwent 3 pullbacks, with each scenario being shorter than the previous one. He noted that the first lasted for 34 days, the second was 21 days, and the third was 7 days before BTC went full parabolic and reached its cycle peak. Meanwhile, each correction was between 30% to 40%.
With Bitcoin’s current price action mirroring the 2017 bull market, the expert believes that history could repeat itself, urging investors to stay vigilant as the development could also influence the altcoins market, which may lead to a swift pullback between 50% and 60% before being bought up again.
Featured image from Unsplash, chart from Tradingview.com