Could Bitcoin’s Recent Price Correction Be Positive?

The price of Bitcoin (BTC) fell to less than $10,000 yesterday, falling down by close to 30% from its recent high of nearly $14,000 on Wednesday June 26.

The original cryptocurrency dropped to at  $9,986.26 at around 11:40 a.m. as per data from CoinMarketCap. At this point, the world’s largest cryptocurrency has declined by nearly 28% from it’s high of $13,879.24 on June 26th, additional CoinDesk figures reveal.

Bitcoin has seen notable losses shortly after approaching the $14,000 resistance, breaking through $13,000 and the $12,000 resistance levels in less than two hours.

Could Bitcoin’s Price Correction Be In Favour Of The Market?

A senior market analyst for social trading platform eToro, Mati Greenspan describes the recent drop as a positive development.

He compared the downward correction to “a bucket of ice water that was dumped on the anxious crypto market, which was indeed getting a bit too hot.”

Several other analysts share Greenspan’s sentiment including the director of digital currency research at TradeBlock, John Todaro who stated:

“This recent pullback is providing a much-needed breather. Bitcoin was becoming overheated as prices went nearly parabolic for a span of a few days,”

CEO of crypto hedge funds at BitBull Capital, Joe DiPasquale offered similar sentiments stating:

“The pull backs are healthy and are preventing an unreasonable climb.”

DiPasquale added:

“Moreover, altcoins as a whole are not losing so much value in terms of BTC prices, which indicates that sellers are not moving out of crypto into fiat but merely balancing portfolios.”

In terms of the near-future for BTC, Todaro remains hopeful in light of the volatility of cryptos remaining relatively subdued:

“It would be ideal if the asset class cooled off some, and traded in a range of $9-11k, as the recent move to $13.5k was very quick and risked burning out in a significant correction.”

He added:

“A longer term, sustained move to the downside, however, could prove troublesome as it erases much of the positive sentiment that has come into the space over the last few months.”