Crypto Rand, a renowned cryptocurrency trader, shared his views on the current market corrections, emphasizing the need for these corrections for sustainable market “growth”.
The trader, who broadcasts his views on X, emphasizes that despite the obvious setbacks, the macrostructure of the crypto market remains “intact.”
This outlook comes at a time when most crypto assets, including Bitcoin, have seen significant price drops over the past few days.
Navigating Resistance Levels: The Path to Growth
Crypto Rand has leveraged the price action index of various cryptocurrencies, such as Cosmos (ATOM), Chainlink (LINK), NEAR Protocol (NEAR), Algorand (ALGO), and MultiversX (EGLD), among others, to emphasize his point of view.
Rand identifies several resistance levels in the trajectories of these assets, suggesting them as potential market turning points. These resistance levels are classified as major or minor, based on the frequency and intensity of price movements historically observed at these points.
Despite the temporary pullbacks these resistance levels could introduce, Crypto Rand views them as necessary breaks that allow the market to strengthen for future upward moves.
This perspective is particularly relevant in light of Bitcoin’s recent price behavior. The flagship cryptocurrency has seen a notable decline from its recent high of $44,000, currently trading just below $42,000.
This downward trend has reverberated through the crypto market, affecting other major assets like Ethereum, including altcoins mentioned by Rand like Chainlink and Algorand.
Over the past 7 days, BTC and ETH have seen declines of 4.4% and 2%, respectively. Meanwhile, Chainlink saw a 6.9% decline over the same period and Algorand fell 4.1% over the past 24 hours.
Always be prepared for further upheaval, but remember that these corrections are necessary for healthy growth.
Mid Caps, for example, have been rejected on main resistance, but the overall macrostructure remains intact.
– Crypto Rand (@crypto_rand) December 13, 2023
The Broader Perspective on Crypto Market Corrections
The sentiment that market corrections are a healthy and necessary aspect of growth is not exclusive to Crypto Rand. William Clemente, co-founder of Reflexivity Research, shares this view.
Clemente says the current market downturn, which could potentially push the Bitcoin price closer to $40,000, should “not be a cause for alarm.”
Clemente says this process is crucial to weeding out weaker players in the market and reducing excessive debt, thereby establishing a stronger foundation for future upward trends.
Clemente further explains that Bitcoin’s inherent volatility should be seen as “a feature and not a bug.” It should be noted that this position reinforces the idea that the crypto market is always evolving and that such fluctuations are an integral part of its journey to maturity.
BTC has just ~doubled in 2 months without a decline, a correction is not that surprising.
Corrections undermine “weak hands” and leverage, thereby establishing a more solid foundation for possible upward moves.
Bitcoin volatility is a feature, not a bug.
– Will (@WClementeIII) December 11, 2023
Featured image from iStock, chart from TradingView
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