Is this the beginning of a correction for Bitcoin?

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Last Updated on 15 March 2024 by CryptoTips.eu

Earlier this week, we told you about stories circulating that forecasted a possible AI bubble. By now, the global media is talking about a possible correction for gold and Bitcoin. The prices of both gold and Bitcoin are doing very well this year and are up 10% and 60% respectively since January 1st.

The Bitcoin price indeed dropped in the past 24 hours and is currently trading at $67,500.

If this is a correction, and it does look like one this morning, I expect it to be over in a few days max though before we go up again. We now have to wait to see where there is support. At the last pullback, support was found around the $58,000 level. Analysts believe that there will be many buyers around the $62,000 level.

Beware, this is not financial advice. Always DYOR (do your own research).

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Gold and Bitcoin

For Bitcoin, the explanation for this year’s enormous growth lies in the launch of several ETFs in the United States. For gold, analysts see a few possible explanations. First, several Chinese households are likely purchasing gold now that the local currency, the Yuan, is in deflation mode.

Over in America, investors are buying gold because they believe an interest rate cut is coming.

“However, it’s not a foregone conclusion that the Fed is going to cut rates,” said Carsten Menke, head of next generation research at Julius Baer.

The problem is that if there were suddenly bad news from the Federal Reserve about those interest rates, investors would be inclined to take profits and we could be confronted with a rapid correction.

For gold, such a correction is usually some 5%. For Bitcoin we are of course immediately talking about a decline of about 20 to even 30%.

Rhona O’Connell, analyst at commodities brokerage StoneX said:

“That rings warning bells for a substantial correction. Once the momentum stops there will be profit-taking.”

Elon Musk in giga factory in Germany

Meanwhile Elon Musk visited Tesla’s giant factory in Berlin and had a fun round of questions with the employees present. Naturally, someone asked him about Dogecoin. Although Musk is already facing a lawsuit from Dogecoin, he still responded.

“Doge is the people’s crypto. Lots of rich people were supporting Bitcoin, but I was like, If the people in the line want me to support Dogecoin, I will support Dogecoin,” Musk said.

Dogecoin shot up about 5% on Thursday morning after the video went public.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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