What Are Analysts Saying About Bitcoin's Recent Drop?

What are analysts saying about Bitcoin's recent drop? Should this decline worry Bitcoin investors?

According to Glassnode data, the drastic price drop over the weekend was the deepest correction Bitcoin has experienced since the beginning of the bull run. However, it is worth noting that these corrections are quite common in the investment world. When a market gets too hot, it is expected that the market will cool and a certain price correction will occur in the process until the balance between buyers and sellers is restored. Bitcoin is currently trading 28 percent below its all-time high of $ 63,600, which it most recently reached on April 13th. Can this be perceived as an entry into the bear market?

This was the case in the 2017 Bull Run

Researchers from The Week On-chain analyst firm said, "This is the deepest correction of the current bull market, but it is also consistently moving forward with the five major corrections that took place during the 2017 bull run." According to the firm, the current correction was such profound due to the controversial weekend tweets by billionaire investor Elon Musk and novice investors who were excited and sold. In the Glassnode report, while the deep correction in question means a loss for new investors, it can be considered as a buying opportunity for Bitcoin HODLers who hold the cryptocurrency for the long term. Jeremy Ong, an analyst at crypto research firm Delphi Digital, said, "I can say that the correction is somewhat unexpected. This is the deepest retreat we've seen since the Bitcoin halving." Bitcoin halving is a practice that cuts mining rewards down to half every four years. Adding to his words, Ong says, "However, the bull market structure remains intact. Historically, the bull markets have dropped in the 30-35 percent band."