The crypto market is finally undergoing its first prolonged price correction of the year. In fact, this is the first real price correction in many months.
In 2023 we saw the entire crypto market climb its way out of the depths of the bear market. It started out slowly, but over the course of the year crypto prices climbed tremendously. The first big accelerated leg up started in October 2023, and then the second rapid ascension started in February of this year.
During that time the market didn’t experience any significant dips. That is especially unusual for the crypto market where most assets undergo 5 or more 30%+ dips on their way to new all-time highs. Just take a look at this chart from legendary trader Rekt Capital which shows this typical pattern with Bitcoin.
That brings us to right now where Bitcoin and the broader market are entering their 4th week of the current price correction. It has been 28 days since BTC made a new high. However, this current correction hasn’t been too severe so far and hasn’t come close to a 30% drop.
While Bitcoin hasn’t been dropping too far in price, the hot bullish price action has cooled off a bit. BTC has been range trading now for a few weeks. It is currently in what we like to call a re-accumulation zone.
So what should you do?
Well, corrections during a bull market tend to be somewhat short lived. This current correction is likely to end anytime now. Couple that with the fact that the biggest gains of crypto bull markets tend to happen in the period that follows the Bitcoin halving. Well, the halving is set to take place less than two weeks from today.
All of that said, right now seems like an amazing investment opportunity. Sure, there is some downside possibility in the current market, however it appears to be pretty limited. There is major support on Bitcoin’s chart near the $62,000 level which would translate to a 9% drop from current prices. That’s not much to worry about.
Conversely, given crypto’s previous track record of exploding post-halving this appears to be an asymmetrical bet.
This current crypto market dip will likely end sooner rather than later. Right now is a great opportunity to rebalance your portfolio and enter trades that you might’ve missed over the last few months.
The AI sector has pulled back in price by a good bit and looks like a great entry right now. For the memecoin investors there looks to be some solid entry points for the major new memecoins of this cycle. Of course, there are also opportunities amongst crypto blue chips right now as well.
Just be prepared to experience a bit of volatility surrounding the Bitcoin halving. There may be a bit more downside in the weeks ahead, but all signs point towards much higher levels in the months to come.
This market isn’t for the faint of heart, and crypto’s volatility has been known to shake out even some of the most veteran traders. However, every once in a while obvious trades make themselves apparent. Right now the next move appears obvious.
