Bitcoin, Not A Bear Market…Common Adjustment Period In Bull Market

Although Bitcoin recently showed a decline, it is analyzed not as a full-blown bearish phase but as a temporary correction within a bull market. Bitfinex disclosed this stance through its weekly report 'Bitfinex Alpha'.

According to the report, Bitcoin rose 4.7% at the start of last week, showing strong momentum, but investor sentiment weakened due to news of an Israeli airstrike on Iran. As a result, most of the midweek gains were given up, reaffirming the sensitive price reaction to external variables.

Within the market, as traders' psychological burden increases, market sell orders have significantly increased, and forced liquidation has also surged. This is interpreted as a pattern similar to past times when a short-term bottom was formed.

Bitfinex diagnosed that if Bitcoin receives support in the 102,000~103,000 dollar range, it means that selling pressure is being absorbed by the market, and there is ample possibility for a rebound. Overall, the prevailing view is that it is a natural correction phase within a bull market.