After he has reached a new highlight of $ 121,400, the Bitcoin price has started consolidating again, although the support continues. This is not uncommon, because after a large meeting, pullbacks prevent quite often and could be the cooling that the upward trend needed to continue. Although the support of $ 117,000 has been kept well, it is possible that a deeper correction in the cards for the cryptocurrency could be before the price starts again.
Why a Bitcoin -Prijsscrash could start
With the hit to new all-time highlights, the weekend brought a delay and this could stimulate the next wave of correction. Crypto analyst Tehthomas explains This in a tradingview post that suggests that there is still the possibility of a short-term correction for the Bitcoin prize. However, it could be deeper than expected, because the price re -testing the newly formed support at $ 109,000 and $ 110,000.
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According to the analyst, the new peaks have deposited the Bitcoin price in unknown territory and there would be a new wave of selling. In view of this, the advice of the analysts are warning if investors are concerned with the market and the possibility of a deeper correction is created.
There is also the formation of an increasing trendline that formed with the horizontal support. Because the trendline goes through the $ 111,000 $ 113,000 area, this suggests that the price could fall down to re-test this level.
In the case of a deeper correction, then the analyst sees a price in the $ 110,000 levels to purchase liquidity. However, this sweep would be inherent Bullish, because the retest would offer a strout point that could lead to a “more sustainable” outbreak in the direction of all time.
Bullish prospects still in general for BTC
Although the possibility of a sweep down to earlier peak levels remains high, it is too possible that the price will not break And instead continue his upward process. Looking back on the rising trendline, the analyst points out that it is possible that the price contains the trend line, reducing the impact of the correction. Such a shallow correction would be a continuation without a deeper correction.
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In this case, the Bitcoin price can resume the upward trend with the goals of $ 120,000-$ 125,000 in mind. Every deep correction is therefore expected to start at much higher price levels. “Bitcoin is currently in price discovery, which means that the structure must lead our expectations. A retest of the trendline or former resistance can offer the next best input,” Tehthomas explained. Regardless of what is the case, the analyst believes that as long as the price remains above the support of $ 110,000, it is inherent bullish.
Featured image of dall.e, graph of tradingview.com