The bull market euphoria appears to have come to a screeching halt as the crypto market correction continues and digital assets keep dumping.
On April 16, prominent market analyst “Cold Blooded Shiller” told his 269,000 followers on X that Bitcoin is “still the cloud that hangs over crypto.”
BTC has retreated 15% from its March 14 all-time high, but historical market cycles have seen corrections of more than 30%.
This could potentially send BTC prices back to around $51,000, which could send the rest of the altcoins into an even deeper freefall.
This is still the cloud that hangs over crypto imo, and it’s $BTC.
1. There is a lot more strength present currently. Whatever factors you align this to, ETF, fundamentals, halving, it’s notable that BTC is holding up.
2. There’s an acknowledgement that this is happening, and… https://t.co/kA1vT43ZYv pic.twitter.com/HBcY7D6Etg
— Cold Blooded Shiller (@ColdBloodShill) April 15, 2024
Correction Could Deepen
There was a 25% correction early in the 2021 cycle, which sent BTC prices tumbling from more than $40,000 to $30,000 within a month. It also dumped 53% later that year in a pullback from $63,000 in April to $30,000 in July.
So, a 30% retracement from $73,000 would take prices back to the $50,000 level, which wouldn’t seem out of place considering previous market movements.
On April 15, market analyst Willy Woo said that if support at $58,900 breaks, “we move to a bear market.”
Markets are “still weeks away from a proper bullish environment,” in the long term, he added.
Glassnode analyst “Checkmatey” also mentioned bear markets, stating that they start “when too many people buy too much coin, too high.” However, he remained a little more optimistic, stating that the market does not appear “top heavy.”
Moreover, the Bitcoin Fear and Greed Index remains in the green zone, which means it is far too early to call a bear market, given the overall sentiment.
Bitcoin Fear and Greed Index is 65 ~ Greed
Current price: $63,419 pic.twitter.com/hpqHnh89Op— Bitcoin Fear and Greed Index (@BitcoinFear) April 16, 2024
Altcoins Bleeding
Analyst Luke Martin observed that many of the altcoins have nearly erased six months of gains in just a couple of weeks. “Some are only 15-20% away from bear market cycle lows,” he added.
Meanwhile, ‘Rekt Capital’ pointed out that there has always been a pre-halving retrace, and this cycle is no different.
#BTC
There always is a Pre-Halving Retrace and this has been the case across all Bitcoin cycles
This time is no different$BTC #Crypto #Bitcoin https://t.co/rz9TTq6li7 pic.twitter.com/FIJ6CJA3Jo
— Rekt Capital (@rektcapital) April 15, 2024
BTC prices were trading down 2.8% on the day at $63,354 at the time of writing. The wider market had dropped 3% with total capitalization down to $2.41 trillion as altcoins got hit harder.
