Bitcoin is trading around $42,200, experiencing a pullback in the market due to a lack of demand and volatility concerns. However, a popular crypto analyst claims the opposite of the general consensus.
Bitcoin’s price has dropped by 7%, erasing the gains of the last week, and altcoins have also seen larger double-digit losses. Experts agree that such a correction should not be surprising following a stable two-month rally.
A crypto analyst and co-founder of Reflexivity Research argues that this pullback is necessary to balance out highly leveraged positions. He indicates that while weak hands are being shaken out of the market, the upward trend continues.
Crypto analyst Remen is confident that the ongoing correction will push altcoins into a major bull wave. He believes that Bitcoin’s continuation of its rise is becoming more challenging and the real action should now start on the altcoin front.
With today’s decline, $400 million worth of leveraged positions have been wiped out, and Bitcoin is hovering around the $42,000 levels. Analysts claim that closures below $42,450 and $43,000 will determine the local peak and suggest that Bitcoin may not be able to cross this threshold for a while (weeks or even months).