Question: Does BTC drop after the rise??
Currently, Bitcoin (as of April 2025) is experiencing a strong upward wave after a period of prolonged 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 healthy after a sharp rise, as the market takes a breather, usually with a drop of 10-20%, before attempting a new rise.
Strong downward reversal: If there are pressure factors such as regulatory tightening, or a strong global interest rate hike, or a significant liquidation of leveraged positions.
Indicators we are monitoring:
Moves by the U.S. Federal Reserve (if it continues with monetary tightening).
Regulatory news on cryptocurrencies.