Bitcoin Hits $79,000, Then Plunges 20%?..."Relying Solely on Institutions Will Lead to Losses"

▲ Bitcoin (BTC) decline/AI generated image

Bitcoin (BTC) recently showed strength by recovering $79,000, but analysts are warning of a sharp price correction of about 20% before a full-fledged rebound.

On April 24 (local time), crypto media outlet Bitcoinist reported expert analysis on Bitcoin's price movement. Bitcoin reclaimed the $79,000 mark, its highest in about three months, driven by strong interest from institutional investors. However, reporter Sandra White reported that some market analysts view the current rally as temporary. This is because downward pressure still exists according to technical indicators. The analysis suggests that another significant price correction is needed for a full-fledged bull market to resume.

Analysts predict that Bitcoin's price could plunge by about 20%. If a downward correction occurs, the price is likely to retreat to around $63,000. This is interpreted as a process of calming an overheated market and forming a bottom. Past data also shows that sharp pullbacks always occurred just before major rallies. Investors should focus on risk management in preparation for short-term volatility.

Analytics firms like Santiment are closely monitoring current market sentiment. While buying activity from whale addresses continues, retail investors appear cautious. Open interest also remains high, signaling increased volatility. Technical indicators suggest entry into an overbought zone. This can be interpreted as a sign that the price has reached a short-term peak.

Inflows through Bitcoin spot ETFs are a positive factor for the market. However, uncertainty in macroeconomic indicators and interest rate policies is pressuring the market. Renewed inflation concerns could dampen investor sentiment for risk assets. If Bitcoin fails to hold the $79,000 level, there is a risk of a sell-off due to disappointment. Securing strong support levels for price defense is urgent at this time.

Bitcoin is currently at a critical juncture. A 20% price correction could be an opportunity to improve market health. Long-term holders are likely to view such a correction as a buying opportunity. However, it is expected to be a painful period for short-term investors. The market's direction will be determined by price movements over the next few days and institutional responses. It remains to be seen whether Bitcoin will withstand the downward shock and head towards its previous highs.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*