Bitcoin is a volatile currency, with prices dropping recently from their peak of more than $73,000 in march to current spot levels. With mounting pressure to sell and investors worried about short-term loss, analysts are looking back at historical data. The historical data is vital in determining if we have reached the market’s peak or if it is just a temporary break before the trend returns.
What will determine the depth of this correction?
One analyst posted a message on X. said How deep the current correction goes will depend largely on whether Bitcoin remains in the market. “parabolic” Or not. When an asset is registered “parabolic” Analysts believe that the price increase is not sustainable at some point.
Then, the prices will tend to drop later after all-time records and key resistance levels have been breached. This could indicate that a new trend is forming. “first cycle top” At the all-time highest of $73,800 in March 2024.
The formation is similar to that seen between April 2013 and 2020.
In another scenario, however, traders can expect to see a completely different outcome, provided the recent growth in price wasn’t parabolic or unsustainable. In this scenario, Bitcoin is likely to continue its downward spiral and return to established support levels.
Analysts predict a correction in future sessions that could reach as low as $53,600. The analyst predicts a possible correction to as low as the $53,600 support in the coming sessions.His retracement of his steps, he continues, will enable the formation a “smoother curve like 2016 – 2017.”
Bitcoin Halving: What is the impact?
Another analyst has also thrown in the idea of the Bitcoin cycle before the halving. Looking at past formations, it is common for prices to drop in advance of the halves. halving The event is scheduled for the third weekend of April.
The analyst posted a message on X. said The current price decline and inability of the bulls to drive the prices up suggests that the coin could consolidate somewhere between $60 and $70,00 within the next few weeks.
Bitcoin is likely to continue losing value in the coming days. BTC is currently trending down below the middle BB of the daily chart. Note that the price is being strongly rejected from $71,700.
Even though there is a continuing upward trend, the buyers are only in charge if prices increase, reverse current losses and, ideally, with increased participation.
Chart from TradingView, with a feature image by DALLE
Disclaimer article This information is only for educational purposes. NewsBTC does not give its opinion on the best way to invest, whether you should buy, hold or sell any investment. Investing is risky and comes with risks. We recommend that you do your research. own Research before investing. You are solely responsible for the use of information on this site. own risk.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com