Bitcoin's recent 20% decline over the past three months has sparked discussions among crypto traders, with many considering it a routine correction in the market cycle rather than a cause for concern.

Raoul Pal, CEO of Real Vision, pointed out in an April 30 post on X that this is the fourth 20% correction in Bitcoin in the past 12 months, describing it as "pretty ordinary stuff." He compared the current price level to Bitcoin's all-time high of $75,830 on March 14, suggesting that such corrections are part of the natural market cycle.

Similarly, pseudonymous crypto trader Rekt Capital noted that this correction is necessary for Bitcoin's price to "resynchronize with historical price norms and the traditional Halving Cycle." He suggested that while the price might fall to $40,000, it could also rise to $400,000, highlighting the inherent volatility and potential upside in the market.

Thomas Fahrer, CEO of the crypto-focused reviews portal Apollo, echoed this sentiment, stating, "Price might fall to $40K, but it might rise to $400K. That's just how it is, and it's a great bet."

Despite the recent decline, Bitcoin is currently trading at $59,730, showing resilience after a 6% drop over the past 24 hours, according to CoinMarketCap data. The price briefly dipped below support levels, reaching $59,097, leading to the liquidation of $96.5 million in long positions, as reported by CoinGlass.

Rekt, commenting on Bitcoin's price movements, suggested that the price is approaching its "final bottom" with each additional downside percentage. He hinted at a potential reversal or consolidation period in the near future.

Ben Simpson, CEO of Collective Shift, suggested that the market may be entering a "lull period" following the recent Bitcoin halving, with a lack of new narratives for traders. However, he remains optimistic about the market's long-term prospects beyond the next few months, despite ongoing macroeconomic uncertainties.

Some traders have pointed to bullish indicators on Bitcoin's price chart, indicating a potential breakout in the coming months. Gally Sama highlighted the formation of a cup-and-handle pattern, where the price falls and then rebounds in a u-shaped recovery, suggesting that the handle is forming "around or above the previous highs."

The broader crypto market has also faced corrections alongside Bitcoin, with Ether falling by 7.4%, Solana dropping by 10.1%, and Dogecoin falling by 10.1%. This market decline has led to a drop in overall investor confidence, as indicated by the Fear and Greed Index, which fell to a "neutral" 54 on May 1, the lowest level in three months.