itcoin">Bitcoin has experienced a notable correction in 2024, falling 23% from its January peak. However, trading at $84,555 as of Good Friday with a market valuation exceeding $1.68 trillion, itcoin">Bitcoin has shown resilience by climbing 13% from its yearly low. While down 10% year-to-date, it’s still outperforming the Nasdaq 100 index, which has declined 13% during the same period. This relative strength suggests itcoin">Bitcoin’s underlying momentum remains intact despite short-term volatility.
Historical context puts the current correction in perspective. itcoin">Bitcoin has weathered far more significant downturns previously, including a 35% decline from March to August last year before staging an impressive recovery. Even more dramatic was the extended bear market following November 2021’s peak, when itcoin">Bitcoin plummeted amid Federal Reserve rate hikes and high-profile crypto company failures. These precedents indicate that while the current pullback may continue in the near term, itcoin">Bitcoin has consistently demonstrated an ability to rebound from such corrections.
Several fundamental factors support a potentially bullish outlook. Mining difficulty has reached record highs, limiting new supply entering the market. Meanwhile, on-chain data shows itcoin">Bitcoin holdings on exchanges have decreased from 2.44 million to 2.18 million since September 2023, indicating strong holder conviction. Technical analysis reinforces this perspective, with itcoin">Bitcoin finding support at the 50-week Exponential Moving Average and remaining above the Ichimoku Cloud indicator. The formation of a cup-and-handle pattern with support at $73,685 suggests potential upside toward $123,585—approximately 45% above current levels—if historical pattern projections hold true.
