'Bitcoin Is In Correction Mode,' But That's 'Necessary For The Chart To Look Good,' Crypto Trader Reassures

Pseudonymous cryptocurrency trader "Stockmoney Lizards" addressed concerns about Bitcoin‘s recent price action following the Halving, maintaining a bullish outlook despite price consolidation.

What Happened: Lizards, in their latest tweet thread, highlights a bullish outlook on Bitcoin's future despite a current correction, which could potentially send Bitcoin back to the $50,000 range. However, this could be a temporary setback and not indicative of the end of the bull market.

"Call it triple top, call it Wyckoff distribution. Bitcoin is in correction mode, but... we still believe that this is temporary,” the trader writes, providing historical context for their perspective. In the earlier halving events, Bitcoin typically experienced a stagnation period before the second part of the bull market kicked in.

The trader attributes the current downtrend to a necessary correction after a greater than 300% increase, as well as external factors such as war, recession fears, inflation and reduced ETF buying.

Their bullish thesis on Bitcoin is based on a one-year simple moving average indicating a "very very green zone" and several layers of support at $60,000, $56,000, and $52,000, with the latter coinciding with the 61.8 Fibonacci Retracement level.

Lizards point to renewed ETF buying pressure once the recently approved Hong Kong ETF goes live pushing Bitcoin's prices higher. 

Price Action: At the time of writing, BTC was trading at $62,482, down 2% over the past 24 hours. However, trading volume remains 23% higher. Bitcoin prices have been consolidating with a monthly loss of 11%.

Also Read: Bitcoin ETF Slowdown A Brief Pause, Not A Negative Trend: Bernstein Says As BTC Trades 2% Lower

Why It Matters: IntoTheBlock data shows a surge in total exchange inflows to $1.3 billion as of April 28 from $657.72 million as of April 27. Additionaly, total exchange outflows soared to $1.34 billion from $800.8 million and large transaction volumes increased by 2.3% to $34.8 billion.

As the crypto market navigates through this corrective phase, Stockmoney Lizards’ analysis provides a reassuring perspective for Bitcoin investors, emphasizing the importance of a long-term view and the potential for significant growth in the coming years.

Based on mass adoption, institutional involvement and inflation as key drivers for their optimistic outlook, Lizards foresees the peak of the cycle in the latter half of 2025, with prices potentially surpassing $200,000 and $100,000 by 2024.

What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

Read Next: Bitcoin’s Consolidation Phase Best Met With ‘Zoom Out, Perspective, Patience’ Approach, Says Trader

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.

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