Stack Funds, a Crypto index fund provider, have said that Bitcoin’s price drop on Nov. 26, 2020, represents a healthy correction. This signifies that the price of the cryptocurrency is up for a continued upward trajectory. Earlier this week, the largest cryptocurrency by market capitalization showed a consecutive gain of seven weeks while crossing above $19,000. Stack Funds views that there was an overbuying of the cryptocurrency since October. Hence, a correction was needed to stabilize the situation.
Bitcoin’s Price Drop Represents Healthy Correction: Stack Funds
Singapore-based Stack Funds looked into all the specifications of market analysis while reinforcing their hypothesis that the cryptocurrency is set to enter into a stage of euphoria followed by the much-needed correction.
If one has to look into the trends of the 2017 bull market in comparison to the current state of 2020 Bitcoin, Stack Funds views that even an increase of a quarter of that price will move the price of the cryptocurrency to over $ 86,000 by next year.
Bitcoin enthusiast Teklordz also sees that Bitcoin’s pullback was extremely needed for the further pump of the cryptocurrency.
35 day pump. Now cooling off. This pullback is greatly needed. Daily RSI receding to mid level territory.
I have a feeling the the next pump will be even stronger.
— teklordz (@teklordz) November 26, 2020
While, notable crypto trader, Mayne of Tether suggest that Bitcoin’s price correction represents a good opportunity for investors to look into altcoins.
— Mayne of Tether (@Tradermayne) November 24, 2020
Pullback Also Indicate Bitcoin Could Go Lower
Meanwhile, crypto figure, Lark Davis speculates whether yesterday’s pullback indicates if the price of the cryptocurrency could go even lower.
— Lark Davis (@TheCryptoLark) November 26, 2020
Founder of Quantum Economics Mati Greenspan also sees that yesterday’s price drop suggest that the cryptocurrency price might go further downwards, saying:
“A 17% pullback is rather tame for this stage of the cycle”
Santiment, a data market analysis indicated that there might be rampantly cashing out profits from the Bitcoin bull run with short term holders at 15% and long term holders at 63%.
The extreme bullishness on the king coin lasted for over a year during the 2017 bull run. Perhaps the similar bullish beliefs on the cryptocurrency represented this month.