Currency analysts believe a market correction is on the way as the bitcoin price climbs once again. Bitcoin’s price increased during early trade on Thursday, gaining 15% from Tuesday’s flash drop.
The increase came after El Salvador announced on Wednesday that it will be the first nation in the world to accept bitcoin as legal tender. On Wednesday, it fueled strong advances in ether, dogecoin, cardano, and other top cryptocurrencies.
Early trading activity on Thursday was more subdued, raising concerns that the market was overheating. “We’ve never seen a bull run move in such a straight path as this,” said Nick Saponaro, co-founder and CIO at Divi. “What we’re witnessing is a correction, a healthy consolidation at higher lows, and the market is now going upward.”
“It’s the product of over-buying, massive overleveraging that was wiped out, and honestly, it’s something I’ve been anticipating to happen for a long,” he said, adding that the drop might be the start of a correction. Saponaro also indicated that the coming days will reveal more about the trajectory.
“I believe we are still in a bull market. Many will point the finger at Elon Musk and market rumors, but this is all speculations. In truth, it is acting in accordance with market expectations.”