‘Pretty ordinary stuff’ — Traders seem unfazed by Bitcoin correction

Crypto traders are stressing that the Bitcoin price correction is “exactly what the cycle needs” right now.

Bitcoin (BTC) has declined approximately 20% over the past three months, but crypto traders are unfazed by the decline, claiming it is just a routine correction in the market cycle.

“This is the 4th 20% correction in BTC in 12 months…pretty ordinary stuff,” CEO of Real Vision Raoul Pal stated in an April 30 post on X — comparing its current price level to when Bitcoin hit its all-time high of $75,830 on March 14.

“This is exactly what the cycle needs to resynchronize with historical price norms and the traditional Halving Cycle,” pseudonymous crypto trader Rekt Capital wrote in a post on the same day.

“Price might fall to $40K, but it might rise to $400K. That’s just how it is, and it’s a great bet,” added Thomas Fahrer, the CEO of crypto-focused reviews portal Apollo.

At the time of publication, Bitcoin is trading at $59,730 after falling 6% over the past 24 hours according to CoinMarketCap data.

It had a brief stint below support levels trading at $59,097, which resulted in the liquidation of $96.5 million in long positions, according to CoinGlass data.

Bitcoin’s price is “getting closer and closer to its final bottom with each additional -1% to the downside,” commented Rekt in a separate X post on the same day.

CEO of Collective Shift Ben Simpson told Cointelegraph that he thinks the market may now be in a “lull period” after the recent Bitcoin halving due to a lack of new narratives for traders.

However, he remains optimistic about the market’s long-term prospects beyond the next few months.

“I believe in the next month or two we are going to see some choppiness sideways, and a continued drawdown, especially when we still have macro uncertainty, we have the rate Fed decision, the ongoing war, there is a lot of uncertainty in the market.”

Other traders have also pointed to bullish indicators forming on Bitcoin’s price chart which could signal a breakout in the next few months.

Crypto trader Gally Sama pointed out the forming cup-and-handle pattern on Bitcoin’s price chart — when the price falls and then rebounds in a U-shaped recovery, which looks like a cup — stating that the handle is forming “around or above the previous highs.”

The overall crypto market also faced widespread corrections alongside Bitcoin, with Ether (ETH) falling 7.4%, Solana (SOL) dropping 10.1%, and Dogecoin (DOGE) decreasing by 10.1%.

Related: Coinbase integrates Lightning Network for Bitcoin transactions

The market decline has led to a drop in overall investor confidence over the past 24 hours, as per the Fear and Greed Index.

On May 1, the index score fell to a “neutral” 54 — the lowest it has been in three months — dropping 13 points from April 30 “greed” score of 67.