Bitcoin is currently on a dream run, with it hitting consecutive new highs every single day. But the main question stands, is Bitcoin actually going to break through the unattainable $20,000 barrier again- or would we be seeing another major price correction?
When is the price correction going to take place?
It is quite difficult to control one’s excitement when looking at the weekly chart for Bitcoin. In the last one month, the company has truly gone on a parabolic run. Nevertheless, it is still quite some distance away from reclaiming its previous all-time high- something that eludes it by 10%. But then again, everything that has a high also has a low. So, the main question that everyone’s asking is- is there going to be a price correction?
According to the Fibonacci retracement levels, the doomsday scenario has painted quite a bleak picture- with a correction of around 50% in an amount of $9000. But in a bull run in the post-halves, does this price correction seem to be something that the hoddlers have to start preparing for, or will the previous levels of resistance serve as quite the support for Bitcoin in this future crisis?
The daily chart of Bitcoin continuously hints at ranges that people might just be able to accept. This is simply due to the previous resistance level being at around $17,000, and then it drops to ranges of $14,000 and $12,500. Although this does represent quite a close of 25% drop in Bitcoin prices, it also does represent quite a ‘healthy’ pullback- which would allow Bitcoin to bring in more retail buyers- people who would step in and purchase the dip. It could also signify their prices going much higher than the key level at $20,000.
Lest it be forgotten, it is quite important to note that Bitcoin has to start searching for a new local bottom- if it wants to reach the heights that it did.
Bitcoin’s strong trajectory despite an Imminent Price Correction
If one were to zoom in continuously on the Bitcoin/USD hourly chart, one would be getting a completely different perspective-one that keeps showing a structure that has been prevalent since November again. This is simply symbolic of the fact that Bitcoin has currently overextended itself, and has already gotten itself trapped into the mid-channel support.
If this structure were to remain intact, this view would be painting a downside which is close to 9%- to the lower channel support of around $16,825. But as far as the present situation goes, the resistance of around $17,000 might just be enough.
If Bitcoin were to punch through the channel’s upper resistance at around $19,000, then it would seem quite possible that a price correction has already taken place- something that would catch those who were trying to get on top off the local top.
