Bitcoin’s (BTC) recent correction setting the stage for a more stable growth, says crypto expert
Despite the massive correction in Bitcoin's price, some experts remain optimistic about the crypto's growth potential.
Mon, 26 Apr 2021, 11:56 am UTC
Bitcoin recently set a new record the crypto skyrocketed above $64,000 earlier this month. However, BTC’s price suffered a correction and has since struggled to regain its previous gains.
However, some experts believe that Bitcoin’s price decline is not necessarily a bad thing. In fact, it might pave the way for a more stable future growth of the crypto.
Based on Cointelegraph Markets data, Bitcoin fell below the previous $50,000 support level on April 23 and dropped to as low as $47,500 due to a heavy wave of selling. The price drop represents a 25 percent drawdown from BTC’s recent all-time high.
Élie Le Rest, a partner at digital asset management firm ExoAlpha, said that Bitcoin being able to halt the slide “confirm the accumulation pattern by institutional investors at or below $50,000, leaving room to grow for Bitcoin in the coming weeks/months.”
If further price correction occurs, Le Rest said that the next support level for the crypto is at $43,000. However, “getting back to this level may trigger a strong downside for the altcoin market as they would have lost all of their recent gains,” which could potentially lead to a rise in Bitcoin dominance above 60 percent.
The recent correction could lay the grown for a more stable Bitcoin price increase in the future. “Either way, this kind of market pullback is very healthy as it contributes to deleveraging market participants and builds ground for a more stable growth,” Le Rest added.
Buying activity started to kick in recently buoying the crypto’s price higher. At the time of writing, Bitcoin traded at $53,409 based on Coinmarketcap data.
Le Rest is not the only one who predicted a positive outcome from the recent Bitcoin correction. For instance, Singapore-based digital asset investment firm Stack Funds believes that the downturn should be viewed as a buying opportunity.
The investment firm pointed out that despite the correction, the crypto’s growth potential remains the same. “The fundamental narrative for bitcoin to the upside has not changed,” a Stack Funds analyst wrote.
The company also noted the growing acceptance of Bitcoin as evidenced by the latest developments in the crypto space such as WeWork’s decision to accept crypto payments as well as Venmo’s new crypto trading feature. “Hence, it might be good ... to turn this into a buying opportunity if [investors] are looking to increase exposure of digital assets in their portfolio,” the investment firm added.
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