Today the global crypto market is experiencing a significant decrease that is making investors tread cautiously just a week after the market cap hit an all-time high of $3.34 trillion on July 22.This drop may seem alarming at first, however, analysts contend that such a retreat is only a part of a healthy correction within a long-term bull cycle.
The leading crypto, Bitcoin (BTC), has also gone down the same path, leaving behind its recent all-time high of $123,218. At the moment, BTC is trading at around $118,000 with the possibility that it might fall to $116,650 before it rebounds.
Also, technicals such as the Relative Strength Index (RSI) show that there is both bearish and hidden bearish divergences. These mixed signals point to short-term uncertainty.
Source: TradingView
Moreover, the market in general is still considered to be in the third wave of a larger Elliott Wave pattern, a stage that usually has the most intense bullish phase.
Such a scenario implies that the ongoing correction is wave four, a momentary stop before the market goes up again.
Experts say that regardless of the correction turning into a symmetrical triangle or slightly descending to a parallel channel, the breakout that comes next is still very likely to happen.
Altcoins, too, are echoing a similar structure. The total altcoin market cap shows strength, with wave three already surpassing the length of wave one. A short consolidation phase could soon lead to fresh highs, especially if the current pattern plays out into a bullish triangle formation.
Bitcoin’s internal wave structure reveals an already completed 1-2/1-2 formation. If confirmed, the next move could be the most parabolic leg yet, potentially pushing the price toward $140,000 or even $156,000 in the coming months.
In summary, while today’s market dip might raise eyebrows, most signals point to a brief cooldown rather than the start of a bear cycle. Investors should remain cautious but not overly bearish — the big rally may just be getting started.
Also Read: Ray Dalio Now Recommends 15% Allocation to Bitcoin or Gold Amid U.S. Debt Crisis
