The correction, as indicated by the current crypto market signals, is along the expected lines, and analysts believe it could lead to an even stronger bull run.
The crypto market observed a wide correction after successive rallies in the last few days. Analysts have not revised their optimistic targets for Bitcoin and other tokens, though. Bitcoin’s support levels at $40,000 could be the reason, while experts had also predicted a brief correction in December. The current crypto market signals may hint towards long-term investors delving into the market at the present conditions.
If they do so, the market may recover within 2023 and beyond. Bitcoin’s targets at $50,000 are still rigid, and analysts believe the goal could be a reality in Q1 of 2024. The psychological resistance of BTC has formed at $44,000. The cooling period could extend for a few days before bulls try pushing BTC above $44,000 yet again.
Crypto investors’ behavior and token prices could also be influenced by potential rate cuts by the US Federal Reserve in 2024. Investment bank Goldman Sachs has published a report that states the Fed could start rate cuts by the third quarter of 2023. Investors could align their strategies with crypto investment products if it occurs, and capital inflows could increase.
BTC/USD 1D price chart
Bitcoin is currently trading at around $41,500 on December 12, 2023, with BTC/USD trading lower by a margin of 1.3% in the last 24 hours. Bitcoin’s market cap was trading at around $816 billion amidst the volatile token prices.
BTC/USD is trading higher than its 20-day EMA (39,331.39), as BTC’s 24-hour volume was at around $31 billion. The crypto market cap decreased by around 0.09%, trading above $1.57 trillion. BTC’s year-to-date returns are above 150.62%
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