Bitcoin Hits $79,000, Then Plunges 20%?... 'Relying Solely on Institutions Puts You at Risk'

▲ Bitcoin (BTC) Drop / AI Generated Image

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

Crypto-specialized media outlet Bitcoinist reported expert analysis on Bitcoin's price movements on April 24 (local time). Bitcoin reclaimed the $79,000 mark, its highest in about three months, driven by high interest from institutional investors. However, reporter Sandra White reported that some market analysts view the current uptrend as temporary. This is because technical indicators still show downward pressure. 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 plummet by about 20%. If a downward correction occurs, the price is likely to retreat to around $63,000. This is interpreted as a process to calm the overheated market sentiment and establish a floor. 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.

Analytical institutions like Santiment are closely monitoring the current market sentiment. While whale addresses continue their buying activity, retail investors are showing caution. The volume of open interest also remains high, signaling increased volatility. Technical indicators suggest entry into an overbought zone. This could be interpreted as a sign that the price has reached a short-term peak.

Capital inflow through Bitcoin spot ETFs is a positive factor for the market. However, macroeconomic indicators and uncertainty in interest rate policies are pressuring the market. Renewed inflation concerns could dampen investor sentiment towards risk assets. If Bitcoin fails to hold the $79,000 level, there is a risk of sell-offs 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 serve as an opportunity to improve market health. Long-term holders are likely to view such corrections as buying opportunities. 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 the response of institutions. It remains to be seen whether Bitcoin will withstand the downward shock and head towards its previous all-time high.

*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.*