Bitcoin suffers correction as fear grips the market – will it recover soon?

Bitcoin has begun the new week with a significant correction that lasted throughout the weekend as fear has taken hold of the market.

According to Coinmarketcap.com on 22 September, the price of Bitcoin has dropped below $113,000 which is a significant drop from the $116,000 seen up to the end of last week.

For a recovery to happen, investors must regain confidence in the market again, while the dip offers another chance to buy in.

Fear overtakes greed

Throughout last week while the crypto market made some significant upward movements, the sentiment in the market remained neutral, meaning investors (mostly retail) were still not impressed by the movements.

Today, the sentiment has turned to fear, meaning there is a bearish tendency among investors which could be the reason for the recent correction.

Meanwhile, Bitcoin isn’t the only asset affected. Large caps among the top ten assets have also dropped significantly in value.

Solana (SOL) for example, which reached a price of over $250 last week, has corrected to just over $223 at the time of reporting, having lost 6.79% in the last 24 hours.

Another major loser is Dogecoin, which has lost over 10% in the last 24 hours despite the recent news of its spot ETF approval in the U.S.

As expected, several mid caps such as PUMP have suffered a worse fate, losing over 18% in the last 24 hours, and low caps could have suffered even worse.

Dip celebrated

While the dip may have created panic that caused some retail investors to sell, for some people, it is a dream come true.

The dip offers a buying opportunity for others and an excellent entry point for traders apparently, which means it is not all bad.

Wise investors would take the opportunity to get in not just on Bitcoin but also altcoins before the next leg up.