According to CryptoPotato, Bitcoin has experienced a significant drop, falling more than 15% from its mid-March peak to under $62,000 on Monday morning. Analysts from 'Stockmoney Lizards' have noted that despite the halving being over, Bitcoin continues to show a downward trend. They suggest that this is not the end of the bull market, but rather a correction that could potentially push prices back to the $50K range before continuing. They referred to this as a 'triple top' or 'Wyckoff distribution', indicating that Bitcoin is currently in correction mode.
The analysts believe that a correction is necessary after half a year of solid gains. Factors such as war, recession fears, inflation, and reduced ETF buying are all contributing to the current market sentiment. They have identified several layers of support at $60K, $56K, and $52K, each one becoming more likely if the one above it is broken. The short-term outlook for May, which is historically a neutral month, is a potential uptrend within the correction range. However, they also warned that any bad news could push the prices towards the $50K range.
This week, the Federal Reserve will make its interest rate decision. Given the higher than expected inflation outlook, rates are likely to remain where they are. This could potentially accelerate the market correction and drop Bitcoin below its immediate support level of $60K. Trader 'CrypNuevo' has advised caution for the coming week, stating that they will not be entering it with any open positions.
Despite the overall short-term sentiment being gloomy, Glassnode analyst 'Checkmatey' has observed that Bitcoin retail holders, who are often quick to sell at the first sign of a correction, appear to be accumulating once again. According to Glassnode data, 'Shrimp' accounts with less than 1 BTC are accumulating 12,200 coins per month. Corrections are considered healthy parts of market cycles and often present opportunities to buy the dip. However, the depth and duration of this current correction remain uncertain.