Here are some reasons why Bitcoin (BTC), price could see a major correction soon
The crypto community rejoiced when Bitcoin’s (BTC), price surpassed $25,000 on February 16. After an eight-month long struggle, BTC finally reached the desired price level. However, Bitcoin suffered a drop on Friday due to bulls struggling to gain traction in the face of the Federal Reserve’s repeated hawkish tone. This suggested that there would be additional rate hikes, likely at a faster pace.
Bitcoin (BTC), What’s the Price To Dump?
Although the bulls have seen an increase in price, few experts believe that Bitcoin will see a new low or significant correction in the near-term. Experts also believe that the recent price surge is due to speculation buying and may not last long.
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An analysis by Hamza, a pseudonymous cryptocurrency expert, has revealed that Bitcoin’s price is poised for a major breakout. This could lead to new lows for the entire month. After the five-wave sequence for Bitcoin’s price chart has been completed, this is a sign that the 5-wave sequence is now complete. His analysis supports the hypothesis that Bitcoin could surpass the $20K barrier, and continue to fall.
Some of the market’s other experts have also voiced the same opinion. CryptoCapo, a well-known crypto analyst who trades swing trading and goes by the Twitter name CryptoCapo, is sticking to his opinion about the likelihood that Bitcoin will retrace back to levels of $12,000.
As I have said many times, bear markets show people’s true colors. Market (and life) ultimately humbles everyone.
12k is possible imo.
— il Capo Of Crypto (@CryptoCapo_) January 14, 2023
BTC Price Analysis
Examining BTC’s onchain analytics revealed that there were many factors that helped the bears and contributed towards the current price fall. According to CryptoQuant, the BTC exchange reserve was growing which indicates that there was more selling pressure. Bitcoin’s aSORP turned red during the bull run, which indicates that more investors sold their holdings to make a profit. A further bearish indicator was the fact that the open interest in Bitcoin dropped by more than nine percent in the past twenty-four hours.
It should also be noted that BTC’s technical analyses (TA) indicators at CoinGape’s crypto market tracker recommend a buy opportunity. These indicators are summarized by the moving averages, which suggest a “buy” at level 15 and a “sell” at 2. The current price of Bitcoin (BTC), is $24,677. This represents a 0.65% increase over the past 24hrs and a 13% gain over the last seven.
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About the author
The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.