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.
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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.
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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.
