In a previous article, we went on board and covered the adjustment that happened suddenly overnight throughout all cryptocurrencies. A massive selloff happened first to Bitcoin, followed by other cryptocurrencies. DeFi market seemed to lag behind, and only showed signs of weaknesses in extended trading hours. What the hell is happening to Bitcoin? Should we jump on board or wait for a further price decrease?
CryptoTicker article Predicted the correction
When we spoke about Bitcoin reaching 40k, we hinted about a price correction around that level. More specifically, a price decrease going down to 31k levels, followed by a recovery to reach the 50k price mark in the long run. Today, without changing any technical tool on the chart, we see the price of Bitcoin following EXACTLY what was drawn previously (figure 1).
What basically happened, is that prices reached 40k, consolidated for 2 days around that all-time high, then corrected back down to a previous resistance area. It is expected that the price might reach further down and hover around 30k if the momentum fails to push prices up.
In another scenario, prices might go back up following this massive selloff, as it might have presented a great entry point for people who were sitting at the sidelines, waiting for such a price adjustment to happen.
Bitcoin Price Prediction – Why WAITING might be a good strategy
Although the current trend of Bitcoin is still upwards, prices might still adjust towards the average uptrend black line in figure 2, which coincides with the USD 31,500 price area. Sitting currently at 35.5K, Bitcoin’s price might either adjust downwards or continue upwards. In both cases, it depends really on the level of risk appetite.
Investors who hold long term can enter the market at current prices and set a stop-loss of USD 29.5K in anticipation of a Crash, or tighter stop-loss areas if traders want to benefit from short-term price-actions.
The Cryptocurrency market as a whole
In the past 24 hours, the cryptocurrency market lost nearly 14% and wiped off USD 80 Billion in market cap across all cryptocurrencies. On the other hand, if we look at the past 7 days, the market is still up, hinting at a market adjustment for the moment.
1- Bitcoin (BTC) : – 13.17%
2- Ether (ETH) : – 16.06 %
3- Tether (USDT) : 0 %
4- Ripple (XRP) : – 17.27 %
5- Litecoin (LTC): – 20.03 %
6- Bitcoin Cash (BCH) : – 15.49%
7- Cardano (ADA) : – 14.38 %
8- Polkadot (DOT) : – 16.34 %
9- Chainlink (LINK) : – 15.68 %
10- Stellar (XLM): – 18.18 %
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Rudy Fares