Bitcoin corrects 50% from an all-time high of around $69k as the price slides below $34k. There has been a constant correction since we fell from $47k, which Bitcoin could not breakthrough after the jump. Currently, it is trading at $33.7k and is very close to the bottom of the last correction ($32.9k). If we fall below this point, the price could move down lower.
Bitcoin’s correlation with the stock market
Bitcoin’s correction comes when the stock markets have fallen globally. US Nasdaq has fallen in the past week, and so has Sensex from India. It is essential to track these markets if you are into crypto, as a strong price relation can be seen in two markets. Bitcoin’s correction has also pushed the entire crypto market to a pitless bottom when everything keeps falling. Altcoins are bleeding the most, with most of them approaching their previous lows during the last correction from Bitcoin ATH of $65k.
Bitcoin has entered a bear market
Benjamin Cowel, a well-known analyst on Twitter, has advocated the theory of lengthening the bull markets of Bitcoin for quite a while. However, he discarded his own theory with the latest correction and concluded that we are in a bear market.
Now that #Bitcoin has put in a lower low, I imagine some of the remaining bulls now concede it’s a bear market?
— Benjamin Cowen (@intocryptoverse) May 8, 2022
The lengthening cycles theory suggests that as we move forward, the period of the bull markets will also increase. Initially, during the 2013 and 2017 bull runs, the rallies were quick and were mostly vertical. However, this year Benjamin and many others predicted that we are going to see a long bull market.
#Bitcoin Lengthening cycles is dead. Bear market has been here for months and will likely continue to rage on for a while.
Let’s hope this is a macro bottom signal, but I don’t think it is.
— Benjamin Cowen (@intocryptoverse) May 7, 2022
Benjamin also says that even if we rally now, we can’t call the last two years a bull market. So, all in all, the next rally might not start anytime soon, and we could visit $30k or even lower.
Tightening monetary policies, War, and inflation
Inflation is off the charts, and to bring it under control, the US Fed Reserve has increased the funding rate by 50 basis points. This is the second hike in 2022 and is the largest one in the last 20 years. It is a major reason for the corrections of the stock market, which does seem to affect crypto as well. The war situation between Russia and Ukraine is also taking a heavy toll on the global economy. With all these negative things happening around the bear market don’t come as a surprise.
What are your thoughts as Bitcoin corrects 50% from its all-time high? And do you agree with Benjamin that we are in a bear market? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Terra now holds more Bitcoins than Tesla after their latest purchase.
