Is Bitcoin's New 5% Tumble Still A 'Bull Market Correction'?

Bitcoin's BTC/USD 5% drop on Monday prompted traders to predict $60,000 as a key support level for the crypto king.

What Happened: Jason Pizzino highlighted the drop as another weekly correction, the fifth in a row. He added that Bitcoin tends to recover from these patterns, implying that buying the dip may be a profitable strategy.

Another crypto trader predicts $61,000 to be the bottom based on historical chart patterns:

Crypto trader Seth predicted Bitcoin going sideways for four months now, tweeting "I think it is likely we bounce $56,000-62,000 buy zone."  

Heavily followed crypto trader The Scalping Pro noted that "Bull market consolidations are not bearish."  Mags stated that despite Bitcoin trading within a significant range in the previous cycle and experiencing a long bear market, the cryptocurrency has shown resilience in 2024.

The trader added that Bitcoin’s price has once again broken out above the range high and has been consolidating above the same level for the past few months, a level it failed to hold in the previous cycle in 2021. And thus, as long as BTC maintains a price above $60,000, the current phase appears to be a consolidation stage before another upward movement.

Also Read: Raoul Pal Foresees Crypto Boom In Election Year’s Q4, Names It ‘Banana Zone’

Why It Matters: IntoTheBlock data notes Bitcoin's daily active addresses decreasing by 18% to 531,980. Bitcoin holders in profit at current levels dropped from 85% to 76%. Transactions greater than $100,000 dropped from June 21's peak of 8,033 transactions to 4,580.

In June, a Bitcoin influencer pointed out that miners offloaded more than 30,000 BTC worth more than $2 billion. This marks the highest this year dropping the reserves to 14-year low levels. He added, "Recent Bitcoin halving cut profits, causing especially smaller miners to sell off Bitcoin to cover operation costs."

Price Action: In the past 24 hours, BTC is down 4.5% to $61,398.  

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Where Do Bitcoin And Ethereum Go From Here?

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.