BTC has just recorded its biggest correction of the cycle

During the financial crash, long-term investors remained calm and hardly moved their assets, while short-term investors sold in panic. At the same time, whales seem to be starting a new cycle of accumulation after falling below $60,000, which adds to the optimism in the market. Despite the volatility seen in recent months, bitcoin's recent drop is the biggest correction of the current cycle, confirming the possibility of further gains. Analysts note that this drop could be a great opportunity for long-term investors.

Bitcoin price stagnates for 24 hours

After significant downward volatility, buyers are trying to regain control of the price. However, sellers are actively defending the $58,000 mark, causing the bitcoin price to stagnate over the past 24 hours. Bitcoin has fallen more than 10% in the past week, and similarly, almost 10% in the past three months. Despite this decline, the BTC/ETH pair has shown clear growth since the fall, rising 3.5% in 24 hours and an impressive 17% over the week. This highlights the interesting market dynamics and shows that some traders see opportunities in the current environment to grow and reorganise their portfolios. Whilst bitcoin is under pressure, altcoins such as Ethereum may offer more attractive opportunities for investors, which is also helping to rebalance cryptocurrency portfolios.

BTC falls more than 30% for the first time since early 2023

An uptrend consists of rising highs and lows. In fact, it's perfectly normal to experience correction phases, even during a bull market. However, it is interesting to note that bitcoin has experienced the largest correction since the beginning of the cycle. The intensity of corrections in the current cycle is significant, causing concern among some investors.

Although bitcoin managed to surpass its last all-time high of 2021, sellers have clearly regained control since March. BTC has been unable to stay above $70,000 and has even fallen below $50,000. In total, the price of BTC has fallen by more than 30%. Although the drop was intense in a short period of time, it was a correction that remains within the standards of various bull markets. This means that despite the current volatility, the cryptocurrency market remains within predictable trends.

The bitcoin price has stalled at the $57,000 mark

On 7 August, sellers pushed the price back to resistance at $57,000. However, overnight, buyers managed to bring the price back to the $57,000 level. The bitcoin price against the dollar (4H) is showing a clear fight between bulls and bears.

To continue the rebound, the price must overcome the resistance and the bearish trendline. In this case, the price may return to the next resistance level at $59,000. On the other hand, if the sellers win, a return to the $52,500 support level is possible. RSI managed to regain momentum with rising highs and lows, closing above 47, but RSI will remain choppy as long as it stalls below the bearish trendline.

Falling below $50,000, BTC recorded its biggest correction of the cycle. This drop hurt the entire cryptocurrency market and clearly made things worse for some on-chain indicators. If the current rebound continues, resistance at the $57,000 level should be broken. Otherwise, a return to the recent lows is possible.