Bitcoin fell below 66K, now what’s next? (MARKET WATCH)

When we are looking at the charts today, we might realize almost the whole crypto market is in red. It’s not a surprise for me, as I have mentioned in this article.

The Bitcoin pump during the last 14 months was fueled by the ETF hype and the upcoming halving combined. There is an excess amount of leverage in the markets at this point, and nearly everybody is overly bullish on any crypto nowadays.

A correction would make a lot of sense at this point of the market cycle, which doesn’t mean the end of the bull run. Retail activity is high now and they are usually using leverage above 5X due to their high risk-apetite. The market will punish these trades at some point.

Another factor we might consider is the profit-taking of the bear market buys, both spot buys and leveraged buys. In the end, nobody can predict the next moves of any cryptocurrency.

The altcoins will take a beat as well if Bitcoin continues this correction, but they might pump heavily while Bitcoin will go sideways after the correction reached the bottom.