Crypto Market Plunges: Will the Correction Continue or Fuel Future Growth?

Cryptocurrency Market in the Red: Will the Correction Trend Continue?

The cryptocurrency market has taken a bearish turn this week, with most major coins experiencing a correction. Analysts suggest that this retracement was inevitable, given the overbought conditions that emerged during the recent recovery rally.

Spot Bitcoin ETF Outflows Fueling Sell-Off

Outflows from spot Bitcoin ETFs have accelerated the selling pressure, sending the underlying asset below the $65,000 mark. Wublockchain recently reported that the spot BTC ETF Grayscale ETF GBTC witnessed a significant outflow, with $358 million exiting in a single day. Total outflows from GBTC have reached $13.63 billion.

BlackRock's IBIT Bucks the Trend

In contrast, BlackRock's Bitcoin spot ETF IBIT has experienced a notable inflow of $233 million. SoSoValue reports that on March 22, the total net outflow from Bitcoin spot ETFs was $93.85 million, continuing a four-day trend.

Will the Correction Benefit Bullish Momentum?

Despite the current correction, analysts believe that it may ultimately benefit the bullish momentum that has been building. The retracement could provide a necessary breather for buyers to regain strength for a higher rally.

Bitcoin (BTC): Consolidation Expected

Bitcoin (BTC) is currently in a correction mode after rising to a new all-time high of $73,800. The price has fallen to $64,815, marking a 12.5% loss. Buyers have shown renewed interest at the combined $60,000 and 38.2% Fibonacci retracement level, but the lack of follow-up suggests that consolidation is likely. If the price falls below $60,000, buyers may seek support at $56,000.

Dogecoin (DOGE): Breakout Potential

Dogecoin (DOGE) is trading between a downsloping resistance trendline and a horizontal support of $0.12. This level coincides with the 61.8% Fibonacci level, which has helped lift the price to $0.158. If buying momentum persists, the price could rise another 8% to the overhead trendline. A breakout above this barrier would signal a resumption of the recovery and could lead to a run towards $0.19-$0.2.

Internet Computer (ICP): Reversal in Sight

Internet Computer (ICP) has experienced a significant correction, with its price falling by 37.9%. However, an emerging trendline has provided support, and the price has surged by 24% to trade at $13.09. If buying continues, the price could rise another 22% to challenge the last high of $16.26, followed by $18.

Conclusion: Correction Creates Opportunities

The cryptocurrency market is currently experiencing a correction, but this could provide opportunities for buyers to accumulate assets at lower prices. Bitcoin, Dogecoin, and Internet Computer are all showing signs of potential reversal, but confirmation is needed before entering long positions.