Bitcoin Enjoys Hefty Price Correction

After sinking to around $50K, Bitcoin (BTC) has corrected to $55,211 (BTC/USD), an increase of nearly 8%, and crypto investors can breathe a small sigh of relief.

That is nowhere near where the coin was only days ago before it fell, following a poor jobs report for the United States economy. Bitcoin was drifting downward after nearly hitting $70K at the end of last month. From there, it gradually declined to $61,040 until dropping off sharply and plunging by more than $10,000 in a few hours.

The poor jobs report affected not just Bitcoin but also the larger cryptocurrency market, causing Ethereum (ETH) to drop 19% in a powerful ripple effect. Other cryptocurrencies declined strongly as well, with many of them losing 15-25% of their value in mere hours.

Over in the stock market, we saw the largest decline we have witnessed in months, with the overall stock market indices dropping severely. This negative jobs report is likely to have repercussions for weeks to come, making for a difficult recovery, but at least Bitcoin is climbing back.

Bitcoin Price Trajectory

The strong comeback from Bitcoin may not last. What we saw today, as the coin climbed by almost 8%, is simply a price correction. If Bitcoin continues to make its way back up to its previous level before the drop, that will likely be at a much slower pace. Today’s jump should be no indication that Bitcoin is steamrolling its ways back up to $60K and beyond.

That US unemployment report still looms and will continue to do so until it is dethroned by new economic data. There are no significant economic reports coming in this week for the United States, so we do not expect to see much positive momentum from that area for the crypto market.

Bitcoin continues to pick up support from Donald Trump and Robert F. Kennedy, Jr., both of whom are running for the presidential office this year. By keeping cryptocurrency in the campaign docket, they ensure that Bitcoin will benefit from the added exposure and support.

Our prediction for now is that Bitcoin will have trouble getting through the $60K level and will struggle to make its way back up to its previous level near $70K, where it was just a week ago.