Does Bitcoin’s Slowdown Mean It’s Time for a Price Correction?
Bitcoin is starting to slow down, so does that mean a temporary rest or the start of a downward trend and price correction?
After an unprecedented bullish run and new record highs, Bitcoin (BTC) is starting off Thursday morning with a nearly flat trend.
The coin has gone from gaining 3-5% each day to now losing 0.42% compared to Wednesday. Bitcoin is at $72,629 (BTC/USD) right now, still hovering close to its new all-time record. The question is whether the token is taking a short break before it surges ahead or if it is at the start of a price correction phase.
Bitcoin Gearing up for a Surge?
Let’s look at a few indicators that look promising for Bitcoin and its continued rise. First of all, we have its long-tail bullish trend. The coin has been climbing since October of last year. The price has wavered and even dropped a few times, but the overall tone has been upward since then. Bitcoin has gained more than 170% since that time, making this one of the best periods in Bitcoins’ history.
While that trend is the strongest indicator that Bitcoin will continue to grow, it is not the only one. We should also take into account the slowly recovering global economy and the lack of legislation being aimed at Bitcoin and the crypto market right now. Many governing bodies have stepped back from targeting cryptocurrency and are allowing the technology to flourish.
Bitcoin Starting Price Correction?
What indicates that Bitcoin might be in slowdown mode for a while or might be experiencing a price correction? We have to consider that the coin has climbed for a long time and the investors might be tired of waiting for it to go any higher. Many of them may be now bailing out since Bitcoin has reached a new record high. It is tough to sustain a bullish trend for very long on any financial asset.
Another factor to consider is that the economy is in a precarious position right now. Some major countries are going through technical recessions and even though a few major ones are recovering, that progress is slow and could turn around.
There is a lot of economic risk that could translate to investment risk. If inflation starts to rise again or a few major economies experience technical recession, things will not look quite so rosy for Bitcoin.
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