Bitcoin Latest Bullish Move: Analyzing the Potential for Correction or Consolidation

As per Will Clemente, co-founder of Reflexivity Research, an impending correction in Bitcoin’s price is anticipated. Clemente suggests that this correction will be swift, serving as a means for the market to shake off “greedy” and leveraged hands.

Bitcoin Latest Bullish Move: Analyzing the Potential for Correction or Consolidation

Utilizing data from Glassnode, a blockchain data and intelligence platform, Clemente highlighted the historical trend of price corrections in Bitcoin’s life cycle. He pointed out that during the 2015 to 2018 cycle, Bitcoin underwent a 36% correction in the midst of the bull run. Similarly, in the last bull run from 2019 to 2022, the flagship cryptocurrency experienced a 62.6% drawdown.

Despite being in the early stages, Clemente used Glassnode’s data to illustrate that the current Bitcoin rally has encountered a maximum drawdown of 20.1%. He emphasized that corrections in Bitcoin prices, particularly during bull runs, establish a foundation for more robust upward movements. According to him, the volatility in Bitcoin is a deliberate characteristic, not a flaw. He noted that a correction in Bitcoin’s price would not be unexpected, especially considering its nearly doubled value in the past two months without significant pullbacks.

Today, Bitcoin witnessed a sharp decline in the early hours, with a loss exceeding 7% in less than three hours, based on TradingView data. The flagship cryptocurrency opened the trading day at $43,786, briefly rose to $43,801, and then swiftly dropped to $40,659 within a short span.