Bitcoin’s Pullback Aims to Correct Overbought Conditions, Not a Trend Reversal

Bitcoin has recorded its longest streak of consecutive declines since Donald Trump won the U.S. presidential election. As of Monday, Bitcoin has fallen approximately 6% over three consecutive days. Since Election Day on November 5, the total market capitalization of cryptocurrencies has grown by $1 trillion, but this growth has recently stagnated.

Tony Sycamore, an analyst at IG Australia, believes that the current pullback is primarily aimed at eliminating overbought conditions rather than signaling a trend reversal.

Adrian Przelozny, CEO of Independent Reserve, stated that the ongoing bullish sentiment is expected to persist until 2025. Meanwhile, TD Cowen analyst Jaret Seiberg noted that Trump’s presidency will grant him control over the U.S. Securities and Exchange Commission (SEC), which could facilitate the easing of cryptocurrency regulations.