Bitcoin‘s upside momentum is gradually losing steam following what appears to be a general crypto market pullback on Monday. Given the brief downswing across the market, there are speculations that an extended price correction for Bitcoin could be imminent, as observed in past cycles.
A Multi-Week Downtrend Before The Next Rally?
As Bitcoin’s price continues to fluctuate, Kevin, a market expert and trader, has highlighted a potential multi-week pullback for the crypto asset in spite of its recent bullish momentum. The forecast shared on the X (formerly Twitter) platform has caused quite a frenzy within the community as several members are wondering whether to offload their holdings to secure profits.
Kevin’s prediction is based on past cycles, drawing parallels to patterns particularly observed in the 2017 market cyc,le whereby BTC experienced a period of consolidation or correction after significant upside movement, suggesting a similar price development in the ongoing bull cycle.
According to the expert, after a price discovery in the 2017 bull market, Bitcoin witnessed three consecutive declines, with each period shorter in duration than the one before. During each scenario, BTC experienced a drop of about 30% to 40%, which lasted for 34 days the first time, 21 days the second time, and 7 days the third time before the crypto asset went full parabolic and reached its cycle top.
While Kevin anticipates a similar 21 to 34-day pullback for BTC in the ongoing cycle, he noted that the decline will be normal for a bull market. In addition, he believes that the development would be healthy and welcomed with open hands by early investors who like to see a sound market structure.
It is important to note that the anticipated correction could also impact the altcoins market, leading to a significant drop in prices. As a result, Kevin has urged investors to watch out for these kinds of moves as they will trigger a swift 50% to 60% correction for altcoins before being bought up again.
Given that the broader outlook for Bitcoin remains bullish, as identified by multiple predictions, this potential pullback might offer a chance for accumulation before BTC resumes its next rally to unprecedented levels.
A Massive Participation By Retail Investors
Despite the expectation of a price correction, the short-term holders of BTC are demonstrating robust confidence in the digital asset. A recent report from Negentropic, a market analyst, shows that these investors are accumulating BTC more aggressively than they have been since 2021. However, it is still below the levels seen in the previous market cycle.
As retail investors’ participation inches closer to the 2021 peak, Negentropic has drawn attention to a possible mass exit, just like in 2021 during Bitcoin’s 50% drop before reaching an all-time high. Nonetheless, the expert claims that the time may be different, and retailers are not a short-term threat for a deeper correction since they are entering the market with force.
