Bitcoin (BTC) Targets $69K But 15% Correction Concerns Loom (Analysis)

Bitcoin surged past the $61,000 mark on Wednesday and even briefly tapped $64,000, marking a significant milestone not witnessed in over two years. Over the past month alone, the leading crypto asset has recorded gains exceeding 45%, propelling the total market value above $2 trillion for the first time across the same period.

Driving this remarkable climb are several factors, including sustained inflows into newly established spot ETFs and anticipation surrounding April’s halving event. Nevertheless, investors appear to be bracing themselves for the potential turbulence ahead, navigating the volatile terrain with cautious optimism.

A Correction Ahead?

Daniel Yan, co-founder of Matrixport, urged caution amidst this bullish fervor. In the latest update, the exec highlighted the chances for a substantial correction. Yan suggests a prudent approach, advising investors to revisit his warnings regarding the magnitude of potential corrections, predicting a healthy retracement of approximately 15% by the end of April.

It’s worth noting that such a potential decline in BTC’s price would send the asset south to around $52,000-$53,000.

Yan highlighted the inherent uncertainty surrounding the timing and magnitude of this correction, particularly amidst the macroeconomic landscape dominated by events such as the Federal Reserve meeting and the Bureau of Economic Analysis’s release of the gross domestic product figures.

With the upcoming Dencun mainnet upgrade as well as the Bitcoin halving event looming on the horizon, March emerges as a crucial month fraught with vulnerability.

The conundrum of whether Bitcoin will surge to new all-time highs or undergo a correction remains unresolved, leaving both long-term holders and short-term traders on edge.

Bitcoin Enters Extreme Greed Phase

The current level of investor greed, as indicated by the Crypto Fear and Greed Index, mirrors the sentiment observed over two years ago when Bitcoin reached its peak of $69,000.

The current reading of 80 (it was 82 yesterday) on the Crypto Fear and Greed Index, which assesses the collective sentiment of the crypto market using a scale from 1 to 100, signifies a period of “extreme greed” not seen since late 2021. This aligns with the evident bullish sentiment among traders, as indicated by the charts.

Bitcoin Fear and Greed Index is 80. Extreme Greed
Current price: $62,505 pic.twitter.com/A8y3U1rIP9

— Bitcoin Fear and Greed Index (@BitcoinFear) February 29, 2024

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