Bitcoin's Volatile Ride: PlanB Sees Normal Growth Cycle, Hayes Predicts $75K-$70K Dip

Bitcoin's price has been volatile in recent days, with the cryptocurrency trading under $90,000 and experiencing a 7% decline this week. Despite the dip, some analysts remain optimistic about Bitcoin's long-term prospects.

PlanB, the creator of the Bitcoin Stock-to-Flow (S2F) model, has highlighted that significant price crashes are normal during Bitcoin's growth cycles. In a post on X (formerly Twitter), PlanB pointed out that during the 2016-2017 bull market, Bitcoin had several price drops of more than 30% before reaching new all-time highs. This suggests that the current price correction could be a normal part of Bitcoin's growth cycle.

On the other hand, BitMEX founder Arthur Hayes has predicted that Bitcoin could fall to pre-election levels in the near future. He suggests that if United States president Donald Trump fails to pass his budget and debt ceiling increases stall, we could see Bitcoin retest pre-election victory levels between $75,000 and $70,000. He advised investors to wait before putting their money in crypto.

Despite the price correction, there is positive news for Bitcoin. On-chain data shows that long-term holders are buying more Bitcoin during this dip. Analyst Ali Martinez showed that long-term holders have added nearly 20,400 BTC, signaling confidence in Bitcoin's long-term value.

However, institutional investors might be taking profits, as BlackRock recently moved $150 million worth of Bitcoin to Coinbase Prime. These moves are outflows from the IBIT Bitcoin ETF and can add to selling pressure.

The Relative Strength Index (RSI) for Bitcoin is at 30.84, getting close to oversold territory. A price rebound might happen soon if buyers step in, but it's clear that market conditions are currently influenced by political events and macroeconomic conditions. The Moving Average Convergence Divergence (MACD) indicator has confirmed a bearish divergence in Bitcoin's price action.