Bitcoin: Correction over, a rally to the highs?

Bitcoin’s fall below $50,000 last Monday already seems far behind us. In just four days, the queen of cryptocurrencies has recovered to once again exceed $60,000. This rapid rebound is a testament to the intrinsic volatility of the crypto market and opens the door to bullish prospects, hinting at a potential major rally according to some analysts.

Bitcoin, ready for a new bull market?

After a severe correction that saw Bitcoin lose nearly 30% of its value, Technical signals are increasingly positiveIndeed, since its low point around $50,000, the flagship crypto has already recovered 26%, breaking short-term resistance.

This kind of rebound is not a first for bitcoin. During the BTC halving of 2016, A similar fall preceded a meteoric bull marketleading this crypto to unprecedented heights.

This time again, the configuration seems favorable for a new rise. The behavior of the RSI (Relative Strength Index) and the moving averages show encouraging signs of recovery.

Analysts, including Peter Brandt, believe the recent decline was justa necessary step to shake off weak hands before taking off towards new records.

Crypto market in the turmoil of the carry trade

While some attribute bitcoin's recent drop to technical factors, others point the finger Yen carry trade as culprit. To put it simply, investors who had borrowed yen at low interest rates to invest in more profitable assets suddenly found themselves having to liquidate their positions.

This massive sell-off affected all markets, including crypto, causing prices to drop rapidly.

Matt Hougan, Chief Investment Officer at Bitwise, in answering the question “does bitcoin really have value” emphasizes that this sale has not fundamentally changed anything about bitcoin. For himthis decline is more linked to an urgent need for liquidity than to a change in long-term trend.

According to Hougan, ” Bitcoin just got caught in the storm, but fundamentals remain strong “.

• The global market has suffered a massive liquidation;
• The carry trade that propelled the Swiss franc and the yen to record highs amplified market movements;
• Nothing fundamental has changed for bitcoin or the crypto market.

The outlook: Bitcoin at $100,000?

With Bitcoin's recent rally above $60,000, the question now is how far it could go. Some technical analysts are thinking big and predicting a move towards $100,000, or even $300,000. $100,000 Bitcoin Is Pundit's Crazy Bet Ahead of US Elections.

This scenario could come to pass if current indicators continue to show signs of strength, such as the RSI improving and holding above key moving averages.

However, it should be remembered that Crypto markets are notoriously unpredictable. Nevertheless, the current market configuration, combined with growing investor confidence, suggests a new bullish wave.

The most optimistic even see it as the beginning of a cycle similar to that of 2017, when bitcoin experienced a spectacular rise after a halving. Although the post-halving BTC rise is like a broken dream.