Bitcoin (BTC) is well under way on its first major correction of the year. A period of retracement seems assured now, after the leading crypto has enjoyed three months of rocket-like gains. The short term trend is pointing down – but the long term uptrend remains completely intact.
Two major support zones have now broken, as Bitcoin steams toward the lower ones. Some aggressive buying is already coming in, though, to try and push the leading crypto back above $10,000. Indeed, this area is a battlezone.
Looking at the hourly chart, we definitely see signs of a bounce around $10k. This bounce could make it up to the top of Bitcoin’s downtrending channel; which top also intersects with the bottom of the previous support zone, as well as the presumed trajectory of the 55 EMA.
Fans of Bitcoin should welcome the current downward price action. The prevailing and more than likely correct narrative of the leading crypto’s price action is that: the long term uptrend which has colored most of Bitcoin’s lifetime has decidedly returned, and the 2018 bear market is well behind us.
This first major correction in that hopefully long uptrend is the first test of the uptrend theory. Here, we will start to acquire some data, some confirmation that the theory is fact.
As covered in a recent long term analysis of Bitcoin’s price history and possible trajectory, we established that price is unlikely to dip below the $8,000 area, if Bitcoin is indeed in an uptrend.
Looking at the daily, we see that a 40% correction would put Bitcoin at about $8,500. Bitcoin has never corrected more than approximately 40% during a general bull market. Nor has it long broken the 100 SMA, pictured. We should keep these targets in mind as the correction plays out.
Amid all this, Bitcoin dominance is continuing to fall – suggesting that altcoins could begin to get more attention.
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