Bitcoin Could Face Deeper Correction After Dropping $2,000 From Highs
- Bitcoin has sustained a strong correction since its $19,600 highs seen earlier today.
- The coin currently trades for $17,300, down approximately 12% from those highs.
- Some have suggested the coin could drop lower toward $16,000 in the days ahead.
- Macro charts show that $16,000 is where Bitcoin may find serious support.
Bitcoin Undergoes Strong Drop From Previous Highs
Bitcoin has sustained a strong correction since its $19,600 highs seen earlier today. The coin currently trades for $17,300, down approximately 12% from those highs.
The leading cryptocurrency could sustain a further drop, some analysts have seemingly suggested.
One prominent analyst shared the chart below amid the drop lower. The chart shows Bitcoin’s price action over the past few months, along with key levels highlighted based on the heat map of volume. As can be seen, there are large “inefficiencies in the charts” where there was a lack of traded volume or consolidation.
According to the chart, there is no substantial bid-side support for Bitcoin until the $16,000 region. While the cryptocurrency already tested that region on some top exchanges (namely Binance) earlier today, it may form consolidation around that region.
Chart of BTC's price action over the past few months with an analysis by crypto trader Bitcoin Jack (@BTC_JackSparrow on Twitter). Source: BTCUSD from TradingView.com
The trader that shared the chart seen above is the same one that weeks ago predicted that Bitcoin would hit the $18,500-19,500 region when it was trading closer to $13,000. This same trader also predicted in the middle of March 2020 that Bitcoin would see a V-shaped reversal to $10,000 by May or June, which was proven correct basically perfectly.
There is a good likelihood Bitcoin drops toward that region, should we assume the analyst’s views come true yet again.
Expect Drops
While many are fearful after the drop, it’s important to note that drops should be expected in the ever-volatile crypto market.
Bitcoin and traditional market cycle analyst Bob Loukas commented after the drop:
“Most have a short memory. Remember in Jan 2017 just shy of #Bitcoin ATH’s, boom 34% decline. The 2 months later a sharp rally, new ATH’s, and double boom 34% decline. Never a one way street.”
The co-founder of Nexo made a similar comment to Bitcoin, noting that any healthy market does not go up 100% of the time.
It is unclear if Bitcoin will continue its descent lower in the days lower, though many are confident that the bull market is still on.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Could Face Deeper Correction After Dropping $2,000 From Highs
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow