See More

Analysts Eye Crypto Market Correction as Altcoins Remain Weak 

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • Crypto analysts predict potential market corrections as Bitcoin's rally could be ending; however, the overall trend remains upward.
  • A market pullback for Bitcoin in the near term is likely, it has happened in previous bull cycles.
  • Despite steady Bitcoin performance, altcoins are retreating with high-cap altcoins falling between 1-3%.
  • promo

Bitcoin’s face-melting rally could be coming to an end as analysts look at potential market corrections. However, most agree that momentum and sentiment are positive, and the trend is upward. 

On December 5, Glassnode analyst “Checkmate” commented on the potential market pullback, stating, “I’d be surprised if Bitcoin didn’t consolidate [or] correct near term.”

Crypto Correction Imminent? 

The analyst added that a few months’ rest “would allow investor cost bases to re-acclimate above the True Market Mean Price.”

He also said that the market hasn’t given back more than 20% so far this year, “which suggests persistent and strong spot demand.”

The previous bull market saw drawdowns exceeding 60%, but this has yet to happen in this bull cycle.

Bull market drawdowns
Bull market drawdowns. Source: X

It should be noted that these are bull market corrections and not bear market bottoms, which are often more than 80% down from the previous peak.

JRNY Crypto reminded his 767K X followers of a big crash/correction before the last bull market. 

“Things are moving quick in the Crypto market right now, but just remember we had a similar run in 2019 that was followed by one of the worst crashes I’ve seen just before the last Bitcoin Halving.”  

However, the big crash mentioned was due to the global market meltdown and the black swan event caused by Covid lockdowns in March 2020. 

“I wouldn’t be surprised to see at least one more market correction before the real bull market starts,” he added. 

This time around, there is a lot of geopolitical tension and economic uncertainty to deal with, so the bulls may not be ready to charge yet. 

Trader Justin Bennett concluded that the last two bear markets ended with a second capitulation. “Don’t rule out a $25k liquidity sweep,” he added.

Crypto market correction prediction. Source: X/@JustinBennettFX
Crypto market correction prediction. Source: X

Markets in Retreat 

Bitcoin has remained steady at $41,600 without gaining much more today. As a result, total capitalization has remained at around $1.61 trillion. 

However, altcoins are already beginning to retreat, the majority of them seeing red during the Tuesday Asian trading session.

Most of the high-cap altcoins had fallen between 1 and 3 percent on the day. Nevertheless, some were taking a bigger hit, such as Solana dumping 7.2% and Chainlink dropping 5.8%. 

Moreover, altcoin markets have lagged behind Bitcoin during this rally and have only reached resistance after 18 months of consolidation. 

Top crypto projects in the US | April 2024
Harambe AI Harambe AI Explore →
Coinbase Coinbase Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

profile.jpg
Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
READ FULL BIO
Sponsored
Sponsored