The cryptocurrency market correction caused by the fall of Bitcoin (BTC) continues for the third day, as the token lost another 3.5% over the past 24 hours, approaching $94,000 after coming close to the milestone of $100,000 last week, writes CoinDesk.
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However, Bitcoin is trending toward a bounce as some short-term holders sell at a loss, creating a buying opportunity for traders at current levels to reach a potential target of $100,000 or more in the coming weeks.
Major tokens followed Bitcoin’s decline, with Solana blockchain platform SOL, BNB, Cardano platform ADA, and dogecoin (DOGE) all falling 7% over the past 24 hours. The CoinDesk 20 Index (CD20), which tracks the largest tokens by market capitalization excluding stablecoins, was down nearly 3%.
Analysts view a correction of as much as 10% from the peak (or as little as $92,000) as a “natural occurrence.” “This correction was due to leverage overheating as open interest and implied leverage reached yearly highs,” independent CryptoQuant analyst MAC_D said on Tuesday. “Therefore, a correction of 10–20% can be considered a natural phenomenon.”