Bitcoin Price Correction Seen as Part of Broader Bullish Cycle
Bitcoin's recent price decline does not signal a structural shift in the market, according to Jaime Merino, director at TradingLatino. In comments to CriptoNoticias, Merino noted that Bitcoin's regular market cycles often include corrections of 20% to 30% within broader upward trends.
Key Support Remains Intact
Merino emphasized that as long as Bitcoin holds above the $99,000 level, the overall bullish structure remains intact. He describes the $99,000 to $100,000 zone as a key accumulation area, based on weekly chart analysis. The analyst believes that, despite a recent drop of over 4% in five days, the price action represents a phase of consolidation rather than a reversal.
- The current range is seen as an opportunity for strategic accumulation by market participants who understand Bitcoins cyclical dynamics.
- Merino projects that if the support holds, the next potential upside range could extend between $125,000 and $147,000.
Institutional Influence and Retail Education Gap
The analysis further points to a shift in Bitcoins ecosystem. Institutional investors increasingly dominate market liquidity, with corporate entities and public companies now major holders of the digital currency. However, Merino argues that Bitcoin's fundamental sovereignty remains with those who control their private keys, not just institutional custodians.
This shift, Merino says, is less about Bitcoin 'leaving' retail users and more about the educational lag between retail adoption and institutional deployment. He warns that the challenge ahead is ensuring more individuals understand and exercise self-custody, as institutional involvement continues to rise.
Broader Industry Trends Echoed by CoinShares
These insights align with recent research from CoinShares. The firm observes that institutional adoption of Bitcoin is evolving beyond passive investment products. Banks and technology companies are integrating decentralized networks to enhance settlement and custody operations. New U.S. regulations and the rise of spot Bitcoin ETFs are driving what CoinShares calls a 'second phase' of adoption.
As institutions consolidate their role in liquidity provision, both Merino and CoinShares suggest that education about self-custody and Bitcoins core principles remains crucial. According to Merino, "Whoever controls their keys, controls their bitcoin."
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