Bitcoin could fall to $50,000 in ‘correction mode’, analyst says

Bitcoin has fallen more than 15% since its peak in mid-March, falling to a ten-day low of less than $62,000 on Monday morning.

On April 28, an analyst channel ‘Stockmoney Lizards’ noted that the halving was over, but Bitcoin continues to print red candles.

They said we are not at the end of the bull market, but added a gloomy prediction that what we see is a correction that could push prices back to $50,000 before continuing:

“Call it a triple top, call it a Wyckoff distribution. Bitcoin is in correction mode,”

#Bitcoin

The halving is done and yet Bitcoin continues to print red candles. Is that for this cycle?

Many people are insecure, especially in view of the geopolitical and macroeconomic situation

Let’s take a look at some charts and indicators.

To 🧵 pic.twitter.com/bQ2nDITrAq

— Stockmoney Lizards (@StockmoneyL) April 27, 2024

More pain before you win

In essence, a correction is necessary after half a year of solid gains. War, recession fears, inflation and reduced ETF buying add to market sentiment.

Analysts pointed to several layers of support at $60,000, $56,000 and $52,000, each of which is more likely if the one above it is broken.

The short-term outlook for May, which is historically a neutral month, is a possible bullish trend within the correction range. “A breakout even looks possible if market conditions remain stable,” they said before adding that “”Bad news will of course push us towards $50,000.”

This week, the Federal Reserve will make its decision on interest rates, and rates are likely to remain on hold given the higher-than-expected inflation outlook. This could accelerate the market correction and push BTC below its immediate support level of $60,000.

Merchant ‘CrypNuevo’ advised caution for next week, saying they won’t go into it with any open positions. “Weakened economy with rising inflation? The worst outcome for the FED,” they added.

On the positive side

While the overall short-term sentiment is gloomy, things aren’t all that bad according to Glassnode analyst “Checkmatey.”

He noted that retail bitcoin owners, “who are apparently degenerates who will sell at the first sign of a correction,” appear to be piling up again.

“Shrimp” accounts with less than 1 BTC accumulate 12,200 coins per month, according to data from Glassnode.

The #Bitcoin retail owners, who are apparently degenerates who will sell at the first sign of a correction….

… seems to be stacking seats once again.

Prawns (<1 $BTC) accumulate 12.2k $BTC per month as it is. https://t.co/kOzSPu5Yx1 pic.twitter.com/j4OU6iMiKD

— _Chess and checkmate 🟠🔑⚡☢️🛢️ (@_Escacmatey_) April 28, 2024

Corrections are healthy parts of market cycles and will always produce opportunities to buy the downside. However, to what extent and how long this current correction will last remains to be seen.

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