Bitcoin correction has sharply declined over the past few days, dropping below $80,000 again briefly in the past 24 hours. Although the asset’s price has since recovered and is now trading above $80,000 at the time of writing, there is still lingering selling pressure of another break below this price level again before the end of the week.
The latest remarks from Arthur Hayes, co-founder of BitMEX, suggest that this pullback is part of a typical bull market correction. Bitcoin might keep declining until it reaches a bottom around $70,000.
Hayes Predicts Bitcoin Correction
Bitcoin’s crash from its recent all-time high of $108,780 has been about 30%. Arthur Hayes recently weighed in on the crash, describing it as a typical correction in a bull market. In a recent post on X, Hayes outlined his expectations for Bitcoin’s trajectory, stating that Bitcoin will probably extend its corrections in the short term. Hayes noted that the BTC price is “likely to bottom around $70K.”
Hayes advised that traders attempting to buy the dip at the current price might experience more downside before the market stabilizes. For investors unwilling to take on more risks, he recommends waiting for central banks to begin easing monetary policies on the crypto industry before buying into BTC. He noted that a crash in the S&P 500 and the Nasdaq-100 would be ideal for loading more BTC. Bitcoin correction has sharply declined over the past few days, dropping below $80,000 again briefly in the past 24 hours.
Furthermore, a combination of stock market turmoil and economic stress leading to intervention from the Federal Reserve, the European Central Bank, the People’s Bank of China, and the Bank of Japan would signal an ideal entry point for accumulating Bitcoin.
The timing of such an event remains uncertain, but Hayes’s strategy suggests waiting for clear signals from central banks before making large-scale investments.
Bitcoin Price Levels Analysis
Still, several critical price levels must be tested before Bitcoin can reach this price bottom. On March 9, Hayes noted that Bitcoin was on track to retest $78,000, warning that failure to hold that level could result in a move toward $75,000. During that time, BTC started the week with a decline from $85,000 to $81,000. He also pointed out the significant open interest in options contracts between $70,000 and $75,000, which could trigger a volatile reaction if BTC enters that range. The short-term price behavior of Bitcoin is unknown; many people question whether it will move toward $70K or undergo a comeback.
Technical analysis, institutional interest, and the world economic situation could all affect BTC’s path. Should institutional purchasing rise or encouraging news about possible Bitcoin ETFs surface, Bitcoin may migrate toward higher levels, say $70K. On the other hand, macroeconomic variables like interest rates or world instability could lower the price of Bitcoin and lead to temporary declines.
For now, BTC has rebounded slightly, reclaiming the $80,000 mark, but the sentiment regarding buying pressure and selling pressure is currently uncertain. At the time of writing, Bitcoin is trading at $82,725, up by 1.67% in the past 24 hours.
Final thoughts
The article provides a detailed analysis of Bitcoin’s recent price movements and Arthur Hayes’ perspective on the market. Bitcoin’s sharp decline below $80,000 and its brief recovery illustrate the volatility often seen in cryptocurrency markets. Hayes’ assessment positions this downturn as a typical correction within a larger bull market, suggesting that Bitcoin could potentially find a bottom around $70,000 before rebounding.
His advice to wait for more precise signals from central banks before investing suggests a cautious approach, especially given the broader economic conditions such as potential S&P 500 and Nasdaq crashes, which could prompt central bank interventions. This aligns with his view that the timing of such interventions could provide a more favorable entry point for Bitcoin.
