Bitcoin’s market correction is essential for these 3 things to play out

Bitcoin’s market correction is essential for these 3 things to play out

Ethereum Investment News
May 25, 2021 by J.D. Smith
20
There has been a lot of talk about the current market’s correction. The reason for the dip has been attributed directly or indirectly to many factors: the most prominent one being, Elon Musk‘s BTC announcement and news surrounding China’s crypto mining ban. Overall, two scenarios played out amid this massive pullback: Short-term hodlers sold at
Screen-Shot-2021-05-23-at-4.32.16-PM

There has been a lot of talk about the current market’s correction. The reason for the dip has been attributed directly or indirectly to many factors: the most prominent one being, Elon Musk‘s BTC announcement and news surrounding China’s crypto mining ban.

Overall, two scenarios played out amid this massive pullback:

  • Short-term hodlers sold at a loss.
  • Miners and long-term hodlers accumulated coins. Ergo, buying the dip

The same can be observed in this Glassnode based analysis

With fear being a prevalent market sentiment, many long-term crypto proponents voiced their confidence in the crypto-markets.

CZ had previously stated that corrections were essential “for: 1) building support levels; 2) let people take profit, and 3) most importantly, shake out weak hands, which helps to build a strong foundation.”

Another trader and analyst stated:

Many popular traders have continued to express their confidence in large-cap alts as well. Crypto trader and analyst, Crypto Capo opined his bullish narrative towards one of the hot trending alts, Cardano (ADA). At the time of writing, the flagship coin traded at the $1.50 price level.

Crypto Capo’s tweet stated:

ADA long-term roadmap (potential) I can see this happening.”

Furthermore, he justified by attaching the price chart:

Source: Twitter

He reiterated a similar bullish narrative in another tweet.

Of late, different analysts and traders like Rekt Capital andDutch trader Poppe have commented on their bullish views on ADA. Interest in altcoin is also evident from Google Trends’ data.

Source: Google Trends

IOHK CEO Charles Hoskinson in his AMA session was also quick to acknowledge an important aspect of market setbacks. He said:

“Welcome to crypto. That’s how crypto works. It goes way up, it goes way down. You guys can’t get 900% gains without expecting some pullbacks.”


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