Bitcoin ( BTC ) set a new all-time high at $69,324 shortly after the opening bell on Wall Street on March 5, before sharply correcting 9.75% to $59,323, which analysts have described as a welcome move before “healthy consolidation” occurs. 

Bitcoin analysts say BTC price correction is just ‘healthy consolidation’ image 0 BTC/USD daily chart. Source: TradingView

Bitcoin price reached “FOMO stage“ above $68,000

Data from Cointelegraph markets Pro and TradingView showed Bitcoin trading 9% below its new all-time high of $69,170 .

While BTC is still up 12% over the last seven days, the pioneer cryptocurrency’s flash crash left market participants wondering where the price will go moving forward.

Market analyst Aksel Kibar shared a chart showing Bitcoin reached above $69,000, calling it the “FOMO stage.”

Bitcoin analysts say BTC price correction is just ‘healthy consolidation’ image 1 BTC/USD price chart. Source: Aksel Kibar/X

In a March 4 post on X on March 4, Kibar spotted BTC trading within the $65,000 and $68,000 ranges, heading toward the November 2021 peak of around $69,000. He warned investors not to be caught up in the fear of missing out at that level.

He said,

“$ BTCUSD I don't think this is a breakout to an all-time signal. Don’t FOMO this part of the move.”

Head of research at Galaxy Research, Alex Thorn, focused his attention on Bitcoin’s historical price action , particularly in 2020, when it retraced briefly after hitting new all-time highs.

Bitcoin analysts say BTC price correction is just ‘healthy consolidation’ image 2 BTC historical price action. Source: Alex Thorn/X

Thorn implied that if history repeats itself, BTC is likely to drop “11.3% lower over 15 days before definitively breaking ATH” again over the next few weeks.

BTC sends a sell signal on the daily chart

The mid to low $50,000s is a possible retracement where a potential dip could occur. On March 2, Peter Brandt shared a chart showing BTC trading in a wide ascending parallel channel with short-term support below $55,000 provided by the pattern’s middle boundary.

“I believe a dip below 55,000 would be a buying opportunity, although such a dip is not my prediction.”
Bitcoin analysts say BTC price correction is just ‘healthy consolidation’ image 3 BTC/USD daily chart. Source: Peter Brandt/X

Meanwhile, independent analyst Ali observed that the TD Sequential indicator had sent a sell signal on the daily chart, sending a warning to traders to pay “close attention” shortly before the price crash.

“Boasting a strong track record in predicting $BTC trends since the year’s start, this indicator previously signaled a buy in early January, preceding a 34% surge, and issued a sell in mid-February, followed by a 4.44% downturn.”
Bitcoin analysts say BTC price correction is just ‘healthy consolidation’ image 4 BTC/USD chart. Source: @Ali_charts/X

Related: Bitcoin price briefly hits new all-time high with support from BTC ETFs

While other traders expected a deeper correction in a pre-halving retrace, technical price analyst John Bollinger termed the retrace on March 5 in BTC price “a bit much.”

He said ,

“We expect profit-taking at new highs; that is the way of things, but this seems a bit much. Is it leverage, weak hands, or something else? In any case, a one-day setback does not make a top.”

Nevertheless, “a failed rally attempt would be ugly,” Bollinger added.

Market data showed traders were poorly positioned for the latest run above $69,000. According to Coinglass data, over $1.17 billion leveraged positions were liquidated across the crypto market in the last 24 hours – $846 million of these being long liquidations. BTC long liquidations totaled $236.33 million.

Bitcoin analysts say BTC price correction is just ‘healthy consolidation’ image 5 Bitcoin liquidations. Source: Coinglass

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.