Bitcoin prices fell again in Asian trading on Monday, with analysts predicting further turbulence as the correction deepens.
After losing more than 15% from its mid-March high, Bitcoin has fallen to a 10-day low below $62,000, according to Cryptopotato.
According to the Stockmoney Lizards analytics channel, the halving event has ended, but there is an ongoing decline in Bitcoin, indicated by the red candlesticks on the chart.
Confirming that the bull market has not yet peaked, they predicted a major correction that could send prices back to the $50,000 range and below before resuming upward momentum: "Whether you call it a triple top or a Wyckoff distribution, Bitcoin is in correction mode.
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Analysts explained that amid the rapid rise over the past six months, a correction in the Bitcoin exchange rate is inevitable, driven by a confluence of factors including geopolitical tensions, recession fears, inflationary pressures and reduced demand for ETFs.
Experts have identified key support levels at $60,000, $56,000 and $52,000, with each level becoming more important if the previous one is broken.
Looking ahead to May, which is traditionally a neutral month, analysts see upside potential in the correction. They point to the possibility of a breakout under stable market conditions, but warn that adverse developments could push prices down to the $50,000 level.
The US Federal Reserve is expected to leave interest rates unchanged this week amid elevated inflation forecasts. Such a scenario could exacerbate the current correction and potentially break through Bitcoin's immediate support at the $60,000 level.
Seasoned trader CrypNuevo urged to be cautious amid economic uncertainty, and refrain from entering new positions amid a slowing economy and rising inflation that could bode ill for the Fed.
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Despite the prevailing short-term pessimism, Glassnode analyst Checkmatey finds glimmers of optimism among retail Bitcoin holders. Observing the trend of hoarding in small retail accounts, he notes an increase in Bitcoin purchases in "shrimp" accounts with less than 1 BTC, indicating retail resilience.
Thus, a correction is a healthy part of market cycles and always creates buying opportunities on a dip. However, it is not yet known how deep it is and how long it will last.
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