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July 23, 2024
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Bitcoin (BTC) Price to Drop 25% Before New ATH, Good Time to Invest in Bitcoin? 

The post Bitcoin (BTC) Price to Drop 25% Before New ATH, Good Time to Invest in Bitcoin?  appeared first on Coinpedia Fintech News

As Bitcoin continues its meteoric rise above $63.9K, seasoned investors brace for the inevitable correction that historically accompanies its upward trajectory. CryptoJelleNL, a respected voice in the crypto community, predicts a 20-25% dip in Bitcoin’s price, offering a lucrative ‘buy-the-dip’ opportunity for investors. Amidst the ultra-bullish wave, some analysts are predicting a short-term correction before a big upward move. 

But they also see this as a good time to buy BTC here’s why? 

Historical Connect: Corrections are Essential

Looking at Bitcoin’s past cycles always include substantial double-digit corrections before reaching their peak. Despite the challenges, these downturns historically offer lucrative ‘buy-the-dip’ chances for investors. CryptoJelleNL predicts a 20-25% correction for Bitcoin, signaling a potential drop to $46,500. He said that this shows that the crypto market has become more mature, as these adjustments have become less severe over time. While the 2016-2017 cycle witnessed seven major pullbacks averaging 32%, the current cycle has seen only four, with an average decline of 21%. 

Insights from Experts

Experts like Galaxy Digital Holdings CEO Michael Novogratz and CryptoJelleNL warn of a possible dip due to high leverage from younger investors. Despite these warnings, Bitcoin’s momentum remains strong, with a recent 2% surge in price action it reflects a resilient uptrend. Bitcoin’s price is still rising, hovering above $62,000, and many people are worried that it might go down. This shows how volatile Bitcoin markets are. Novogratz suggested that Bitcoin might pull back before hitting new highs, potentially retracing to around $55,000. His reasoning revolves around retail traders becoming overly leveraged before the anticipated climb.

He backs this with real-world examples, like a smart whale investing $1.39 billion in Bitcoin in July 2022 at $21,629 per BTC, highlighting the strategic value of timely market entry and patience amidst volatility as BTC surges past $62,000.

On the flip side, according to JPMorgan, we might see Bitcoin’s price taking a deep dive towards the $42,000 mark after halving.

Embracing Market Dynamics

As Bitcoin braces for a potential correction, investors are reminded of the cyclical nature of crypto markets. While corrections may pose short-term challenges, they also present valuable opportunities for strategic investors to enhance their positions in the leading crypto asset. In navigating these market dynamics, patience and a long-term perspective remain key to capitalizing on Bitcoin’s potential.

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