Analysts believe the recent drop in Bitcoin (BTC) price is a natural correction in its upward trajectory and not a sign of the end of its four-year cycle. Despite investor sentiments hitting ‘extreme fear’ multiple times, such corrections are usually part of bullish trends. However, Bitfinex analysts warn that some technical indicators are leaning towards a downward trend, suggesting the bull cycle might end sooner than expected. Yet, they emphasize that Bitcoin’s four-year cycle remains a crucial price determinant, and corrections in bullish markets are considered natural. Key points include the launch of Bitcoin spot ETF funds in the US, with assets under their management recently reaching $125 billion, indicating a changing trend in Bitcoin’s traditional cycle. Bitcoin closed its daily price candle above $84,000 on March 15, a positive sign that could boost investor confidence. However, this digital currency still has a high correlation with traditional financial markets and may reach its price floor simultaneously with the S&P 500 index. Currently, the $72,000 to $73,000 range acts as a key support level. Nevertheless, major economic factors such as bond yields and stock market performance can determine Bitcoin’s next price direction. Finally, strong institutional adoption in the past year has been a supportive factor for Bitcoin. Moreover, the 2024 halving event, which reduces the block reward to 3.125 Bitcoins, will continue to have a long-term impact on its price trend. Since this event, Bitcoin has grown over 31%, indicating the positive effect of halving on its value.
