Bitcoin, if you buy now, you'll get trapped..."Additional correction to the $50,000 range before the real rally comes first"

▲ Bitcoin (BTC)

An analysis has emerged suggesting that Bitcoin (BTC) will undergo an additional correction to the early $50,000 range due to macroeconomic instability and cyclical trends, before laying the groundwork for a full-scale rebound.

Dennis, a crypto angel investor and operator of the cryptocurrency YouTube channel Virtual Bacon, appeared on Altcoin Daily on April 17 (local time) to deeply diagnose the current macroeconomic crisis facing the cryptocurrency market and future response strategies. Dennis emphasized that Bitcoin's 4-year cycle is working very accurately and analyzed that the bottom has not yet arrived. He explained that more time is needed for macroeconomic risks such as inflation figures and rising oil prices to be fully reflected in the market.

Bitcoin's downside target was presented as the early $50,000 range. Dennis saw a high probability of Bitcoin falling below $60,000 within seven months. He stated, "The 200-week moving average is currently forming around $59,000," and predicted, "In light of past cases, the $59,000 point will be a strong support level." He particularly assessed the period when the price enters between $50,000 and $59,000 as the most opportune time for aggressive buying.

From a technical perspective, attention was drawn to the changes that quantum computers and artificial intelligence will bring. Due to the nature of Bitcoin's consensus mechanism, quantum-resistant upgrades are delayed, and the handling of coins in lost wallets is expected to be a long-term challenge. On the other hand, the combination of artificial intelligence and cryptocurrency was highlighted as a new opportunity. Dennis likened the pricing of artificial intelligence model usage fees through censorship-resistant cryptocurrency payment systems to a new oil trade.

In the altcoin market, differentiation among individual assets is expected to intensify. Concerns were raised that Ethereum (ETH) is showing weakness against Bitcoin and is being relegated to the position of digital silver. Dennis positively evaluated Render (RNDR) and BitTensor (TAO), among others, due to the strong AI theme. He analyzed that major coins, including XRP, are maintaining their lows against Bitcoin, but significant capital inflow will only be possible once the U.S. cryptocurrency market structure bill (Clarity Act) is passed.

If the U.S. Securities and Exchange Commission (SEC) begins to classify memecoins or NFTs as digital goods or collectibles, the rules of the market will completely change. Regulatory establishment may cause short-term confusion, but in the long term, it will be the key to opening the doors to large-scale capital markets. Investors should conservatively manage their portfolios, focusing on Bitcoin even in a bear market, and prepare for the upcoming bull market.

*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.*