The cryptocurrency market is currently undergoing a significant price correction, marking the first real correction in several months. Throughout 2023, the crypto market experienced a steady climb out of the bear market, with prices steadily increasing. However, this recent correction is the first notable dip in prices during this period.
Typically, the crypto market experiences multiple significant dips of 30% or more before reaching new all-time highs. This chart from renowned trader Rekt Capital illustrates this pattern with Bitcoin.
Currently, Bitcoin and the broader market have been in a price correction for four weeks. It has been 28 days since BTC reached a new high. However, this correction has not been too severe and has not come close to a 30% drop.
While Bitcoin’s price has not dropped significantly, the bullish price action has cooled off. BTC has been range trading for the past few weeks and is currently in a re-accumulation zone.
So, what should investors do?
During bull markets, corrections are typically short-lived. This current correction is likely to end soon, especially considering that the most significant gains in crypto bull markets tend to occur after the Bitcoin halving. The halving is scheduled to take place in less than two weeks.
Considering these factors, now is an excellent investment opportunity. While there is a possibility of downside in the current market, it appears to be limited. Bitcoin’s chart shows strong support near the $62,000 level, which would only translate to a 9% drop from current prices.
On the other hand, based on crypto’s previous performance post-halving, this seems to be an asymmetrical bet.
The current dip in the crypto market will likely come to an end soon. This is a great time to rebalance your portfolio and take advantage of missed trades from the past few months.
The AI sector has experienced a significant pullback in price and presents a great entry point at the moment. For investors interested in memecoins, there are solid entry points for the major new memecoins of this cycle. Additionally, opportunities exist among crypto blue chips.
Be prepared for some volatility surrounding the Bitcoin halving. There may be some downside in the coming weeks, but all indications point to higher levels in the months ahead.
The crypto market requires a strong stomach, and its volatility has even shaken experienced traders. However, occasionally, obvious trades present themselves. Right now, the next move appears to be clear.
