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Pullbacks are a part and parcel of uptrends. They not only help shake out the weaker hands but also offer an opportunity for traders to add to their position or make fresh entries. Currently, Bitcoin (BTC) is witnessing a correction as bulls and the bears battle for control, but is this a buying opportunity or the start of a trend reversal?

The Crypto Fear & Greed Index has risen to 69, indicating that traders have started to get greedy again. When this happens, it is time to become cautious in the near term because when new traders begin chasing prices higher, experienced traders sell into strength and buy on dips.

ARK Invest CEO Cathie Wood said in a recent interview that Bitcoin and Ether (ETH) are being considered as safe haven assets like gold. Meanwhile, Bridgewater Associates founder Ray Dalio does not consider Bitcoin to be “an effective store hold of wealth or a medium of exchange.” He called it “a very, very poor alternative to gold.” This shows that some legacy investors are still uncertain about the future prospects of Bitcoin.

Will traders buy the dip in Bitcoin and the major altcoins or could the correction deepen further? Let’s study the charts to find out.

S&P 500 index price analysis

The S&P 500 index (SPX) has been gradually moving toward the overhead resistance at 4,200. The price action of the past few days has formed an ascending triangle pattern, which will complete on a break and close above 4,200.

On April 17, the price of Solana (SOL) crept lower in the wake of similar price moves across the top-ranking cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).

SOL's price dropped over 4% under $24.50 despite rising to $26 — a two-month high — earlier in the day.

In comparison, BTC's and ETH's prices dropped 3.5% and 3%, respectively, hinting at a bearish start to the week.

SOL price in a technical correction

The SOL/USD selloff on April 17 started after it entered its 2023 resistance range.

Notably, the $25-27 price area has capped Solana's upside attempts since January 2023. Testing it as resistance has preceded 25-40% corrections on multiple occasions this years, as illustrated below.

On April 17, the price of Solana (SOL) crept lower in the wake of similar price moves across the top-ranking cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).

SOL's price dropped over 4% under $24.50 despite rising to $26 — a two-month high — earlier in the day.

In comparison, BTC's and ETH's prices dropped 3.5% and 3%, respectively, hinting at a bearish start to the week.

SOL price in a technical correction

The SOL/USD selloff on April 17 started after it entered its 2023 resistance range.

Notably, the $25-27 price area has capped Solana's upside attempts since January 2023. Testing it as resistance has preceded 25-40% corrections on multiple occasions this years, as illustrated below.

Tether (USDT) has emerged as a clear winner amid the ongoing banking crisis and crypto crackdown in the U.S.

On April 17, the U.S. dollar-pegged stablecoin's circulating market valuation reached nearly $81 billion, just 1.5% below its record high of $82.29 billion from a year ago. It has grown about 20% year-to-date (YTD) already and is now eyeing new all-time highs.

Tether rivals hit new yearly lows

USDT's growth came as Tether ate up the market share of its stablecoin rivals, USD Coin (USDC) and Binance USD (BUSD). That is due to crypto traders' belief that Tether's operations have no exposure to the potential banking crisis contagion.

For instance, the circulating market capitalization of the USD Coin, the second-largest stablecoin, has dropped over 25% YTD to $31.82 billion, its worst since October 2021, primarily due to its exposure to the failed Silicon Valley Bank. 

BUSD, on the other hand, has witnessed a 60% drop in market capitalization in 2023 to $6.68 billion, its lowest since April 2021, as the New York Department of Financial Services (NYDFS) ordered Paxos, a regional crypto firm, to stop its mint and issuance. 

Tether (USDT) has emerged as a clear winner amid the ongoing banking crisis and crypto crackdown in the U.S.

On April 17, the U.S. dollar-pegged stablecoin's circulating market valuation reached nearly $81 billion, just 1.5% below its record high of $82.29 billion from a year ago. It has grown about 20% year-to-date (YTD) already and is now eyeing new all-time highs.

Tether rivals hit new yearly lows

USDT's growth came as Tether ate up the market share of its stablecoin rivals, USD Coin (USDC) and Binance USD (BUSD). That is due to crypto traders' belief that Tether's operations have no exposure to the potential banking crisis contagion.

For instance, the circulating market capitalization of the USD Coin, the second-largest stablecoin, has dropped over 25% YTD to $31.82 billion, its worst since October 2021, primarily due to its exposure to the failed Silicon Valley Bank. 

BUSD, on the other hand, has witnessed a 60% drop in market capitalization in 2023 to $6.68 billion, its lowest since April 2021, as the New York Department of Financial Services (NYDFS) ordered Paxos, a regional crypto firm, to stop its mint and issuance. 

Bitcoin (BTC) headed lower into the April 17 Wall Street open as downside began liquidating longs.

Bitcoin price tipped for break below $29,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD wicking to $29,247 on Bitstamp — its lowest in a week.

Gains for Asian stocks failed to rescue the losses on the day, these beginning immediately after the April 16 weekly close.

Traders, many of whom had predicted a retest of $30,000 support, were unsurprised, with many hoping that the event would form a “buy-the-dip” opportunity before Bitcoin moved higher.

Popular trader Crypto Ed said that BTC/USD had “swept the lows,” while others focused on the area around $28,500 as a potential bottom zone.