Last week's Bitcoin drop was a healthy readjustment, reducing chances of a sharp drop

Bitcoin's decline last week was a healthy recorrection that will reduce future downside volatility, according to an expert analysis.
According to reports on the 8th (local time), the global cryptocurrency exchange
Analysts at Netfinex say Bitcoin's price drop to support at $60,000 last week, along with several other major technical factors, could be a big factor in the coming days and weeks.
The report said this was a strong signal that volatility would be low for the rest of the year. Bitcoin rose to $66,600 on September 27, but the Middle East region’s
Market optimism has dwindled sharply due to political tensions and concerns about the strength of the U.S. economy. However, the analysis showed that Bitcoin fell from its all-time high to its all-time low between September 27 and October 4.
The 9.94% drop to the low reflects the cautious sentiment of spot investors at higher price levels. Bitfinex analysts say investors are buying into Bitcoin at lower prices.
"Bitcoin has experienced its first four-day decline since early August, and the market has undergone a healthy reconciliation," the analyst said.
This resulted in Bitcoin's open interest dropping from $35 billion to a more stable $31.8 billion.
The drop in the value of long positions and the liquidation of long positions worth about $450 million on October 1st showed that the market was mainly driven by expectations of an upswing, according to Bitfinex.
"The significantly larger liquidation amount compared to the price drop was due to the cryptocurrency market surpassing the key technical and psychological level of $65,000 (approximately 9.6 million yen) and the rise in prices," the analysts said.
"The report also noted that the market was heavily supported by positive U.S. employment data in September and October, and then fell to 1.5% in November.
He predicted that risk appetite would recover again as the Federal Reserve is expected to cut interest rates again.
"The rebound to the previous high of 9.24 million yen (approximately 1.924 million yen) signals a return to aggressive spot buying," he explained, but added that it was "too early to draw any definitive conclusions" about the short-term market direction.