#MarketRebound Question: Will BTC drop after the rise??
Currently, Bitcoin (as of April 2025) is experiencing a strong upward wave after a long period of volatility.
But like any volatile financial instrument (especially cryptocurrencies), after any strong rise, we often see one of two scenarios:
Natural price correction: This is a healthy occurrence after a sharp rise, where the market takes a breather, usually dropping by 10-20% before attempting a new rise.
Strong downward reversal: If there are pressure factors such as regulatory tightening, or a significant global interest rate hike, or a large liquidation of leveraged positions.
Indicators we monitor:
Movements of the U.S. Federal Reserve (if it continues tightening monetary policy).
Regulatory news on cryptocurrencies.
Liquidity data and trading volume in the market.