A top crypto strategist thinks Bitcoin (BTC) and the crypto markets are due for another correction before seeing a sustained recovery.
Pseudonymous analyst The Flow Horse tells his 223,400 followers on the social media platform X that markets often do not instantly reverse after an extreme correction.
On Monday, Bitcoin dropped by as much as 15% to $49,000 before BTC bulls stepped in and pushed the price above $50,000.
According to the analyst, it is more likely for markets to revisit lows before any recovery could take place.
“After significant moves like this, we don’t often see a quick reversal unless there is news or an incredible imbalance of positioning.
Neither are here.
You are more than likely going to get a couple of chances to buy lower again, be patient and enjoy the volatility.”
But amid the steep pullback, the top trader reminds his followers that Bitcoin and crypto have entered a new age with the introduction of exchange-traded funds (ETFs).
“Even in all this, don’t lose the plot.
ETFs are definitely closer to a beginning moment for this asset class than the end…
Keep in mind, the integration of these products is still in its infancy, and we are likely to see massive market structure changes as a result. I am a big proponent of the idea that we don’t see the same four-year cycle moving forward.
Stay sharp, the game board is much tougher but the game is not being taken away.”
He also believes the stock market correction is temporary and it will trade higher in the coming months.
“My only firm belief is that six months from now, the stock market is higher and we are yapping about something else.”
At time of writing, Bitcoin is worth $55,660.
Generated Image: Midjourney
