Bitcoin slows down after massive surge as analysts eye rebound

The year has been a rollercoaster ride for Bitcoin and the crypto market. The biggest crypto ended its long slump in the past few months, even crossing the 70,000-dollar mark.

However, the massive surge cooled off after BTC hit its all-time high of 73,800 dollars. Now, the crypto is hovering around the 66,000-dollar mark.

According to crypto analysts, the dip is a natural correction after the quick price hike. According to Amelia Jones, an analyst at Cambridge, Newfound optimism recently fueled the crypto market. However, a healthy market requires consolidation to set support levels before upcoming upticks.

A negative Coinbase premium is further evidence of the concurring correction. The metric compares Bitcoin’s price on Coinbase to the price of other exchanges. A negative Coinbase premium shows a discount on the exchange. It also indicates a potential pullback from investors. Bitcoin has been witnessing this trend since mid-March 2024. 

However, it is worth noting that the overall sentiment around BTC is still bullish. A quick price hike in a short period hints at strong purchasing pressure. Analysts believe the consolidation period will lead to another surge in the upcoming months.

Expert analysis predicts a market rebound before the end of H1 2024. Multiple factors indicate a renewed surge, including increased buying activity from institutional investors, especially in the US.

Moreover, whales or large investors also hold BTC, inducing confidence among long-term traders.

Above all, there is the possibility of major companies like BlackRock implementing a reputed $5 trillion cryptocurrency strategy. Such variables can be powerful catalysts for the cryptocurrency market’s growth.

Although it is natural for short-term market flctuations to occur, the ongoing consolidation is a healthy sign. With institutional investors’ growing interest and the fourth halving coming up, Bitcoin has the stage set for another huge surge in 2024.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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