Bitcoin analysts predict normal correction

Bitcoin's (CRYPTO:BTC) recent correction from its January peak of $109,000 is seen by analysts as a typical cycle pullback rather than the end of its bull run.

The cryptocurrency has dropped by about 24%, with macroeconomic factors and uncertainty surrounding U.S. interest rates contributing to the decline.

Collective Shift CEO Ben Simpson notes that while Bitcoin has experienced several corrections in this cycle, they are fewer than in previous cycles.

He believes the peak has been delayed due to macro conditions and that the market is waiting for a new narrative to push prices higher.

Derive founder Nick Forster shares a similar view, stating that Bitcoin remains in a normal correction phase, with the cycle peak yet to come.

Historically, Bitcoin has seen comparable pullbacks during long-term rallies.

The cryptocurrency’s movements are increasingly tied to traditional markets, with macroeconomic conditions affecting all asset classes.

Independent Reserve CEO Adrian Przelozny warns that this could lead to increased inflation and slower international growth.

Some analysts remain optimistic, citing potential drivers such as U.S. rate cuts and rising global liquidity as factors that could boost Bitcoin’s price.

Others, like Capriole Investments founder Charles Edwards, take a more cautious stance, estimating a 50:50 chance that the bull run is over.

Technical analysts point to patterns suggesting a possible rebound, with price targets above $130,000 based on a cup-and-handle formation.

However, Bitcoin remains volatile, with its future heavily influenced by external economic conditions, particularly the Federal Reserve’s stance on interest rates.

At the time of reporting, the Bitcoin (BTC) price was $83,180.88.