Analyst: Bitcoin is only experiencing a "normal adjustment", the market is waiting for the next narrative

Ben Simpson, CEO of Collective Shift, stated that Bitcoin's pullback from its January peak is a typical cyclical adjustment and not unusual. The price top has not yet arrived.

Simpson said: "I don't think the bull market is over; I believe the cycle's peak has been delayed due to macro conditions. Global liquidity is poor, which is unfavorable for cryptocurrencies. Compared to 12 times in the previous cycle, this is only the third or fourth time Bitcoin has had more than a 25% pullback in this cycle. The market is overheated and needs to cool down; it needs to find new fundamentals. Right now we are waiting for the next narrative."

Nick Forster, founder of Derive, holds similar views stating: "Bitcoin may be in a normal correction phase with its cyclical peak still yet to come. Historically speaking, Bitcoin experiences these types of pullbacks during long-term uptrends - there's no reason to think this time will be any different."

Forster added that Bitcoin’s fate over the next six months seems increasingly tied with traditional markets. Simpson from Collective Shift suggested that narratives might revolve around US interest rate cuts, quantitative easing relaxation and increased global liquidity moving forward.(Cointelegraph)