Bitcoin Retreat a Temporary Correction, Says Samson Mow
Bitcoin is up slightly from its recent decline and could be moving much higher thanks to strong investor support.
Quick overview
- Bitcoin fell to $104K last week but has since recovered to $108,893.
- The recent decline is viewed as a temporary price correction rather than a long-term crash.
- Increased trade volume suggests investor interest is rising, indicating potential for future gains.
- Despite a slower growth compared to gold and tech stocks, Bitcoin is expected to rebound in the coming weeks.
Last week, Bitcoin (BTC) fell to $104K as the crypto market experienced a freefall. The coin is back to $108,893 (BTC/USD) this morning, though, and could be safe for now.
The quick, sharp fall that the cryptocurrency market went through appears to have run its course and does not seem to be a long-term market crash. Bitcoin has already made back some of last week’s losses, but it has a way to go to get back to its recent record high. The coin’s decline, however, may just be a temporary price correction according to Samson Mow, the CEO of Pixelmatic and former CEO of Jan3, a Bitcoin technology company.
The price of Bitcoin is expected to rise due to favorable market conditions, and the recent decline is attributed to a natural flushing as part of the coin’s market cycle.
Why Bitcoin May Not Stay Down for Long
Bitcoin’s trade volume is up more than 10% for Tuesday, signaling piqued interest in the coin despite its recent drop. This could indicate investors buying the dip, as Bitcoin has achieved several all-time highs this year, and could achieve at least one more before the year is done.
The coin has moved from $96K in January to its current $108K level, but it achieved a high of $126K earlier this month. With that recent record in the public consciousness, investors are likely to jump in while the price is low and wait for their investments to gain in the coming weeks. Bitcoin has remained one of the less volatile and more reliable crypto tokens for much of the year.
Even though gold and tech stocks are rallying, Bitcoin and the wider crypto market do not seem to be growing at a similar rate. That can be deceiving, though, since crypto tends to ebb and flow more fluidly than trustworthy stocks. The current ebb should be followed by a strong upward movement in the coming weeks, thanks in part to the recent record high that investors will expect to see repeated soon.
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