For the past six days, Bitcoin (BTC) has been in a sharp corrective phase. The leading crypto fell a full 30% in valuation during this period, from its high of about $13,900.
This looked to possibly be the beginning of a period of retracement for Bitcoin, after the blistering gains of the past three months.
But as it turns out, BTC has bounced hard just under $10,000, with plenty of bulls stepping in to keep the leading crypto in five-digit-territory, and stands at a point of possible reversal back to a full uptrend – although this is nowhere yet guaranteed.
In yesterday’s price analysis, CryptoGlobe predicted a bounce to at least the $10,600 price level.
But Bitcoin bounced straight through this level and continued up, through the previous short term downtrend line. This breakout was held at a critical resistance zone (red, below), which is defined by the 0.5 Fibonacci retracement line from the entire 2018 market structure, among other historically significant price points.
Bitcoin’s price has been rejected at the red level, but it is still broken out of the downtrend. Now, we must closely watch the breakout area at around $11,800 to hold. If a retest of this area can hold – or perhaps a bit lower even, on the downtrend itself around $11,500 – then we may have a reversal on our hands.
We believe that recent price movement is merely a correction from the hype surrounding Libra. Sentiment within the crypto market is extremely healthy, and conversations around Bitcoin's have continued to increase over the last year (blue line). pic.twitter.com/EZBdsUqyOg
— The TIE (@TheTIEIO) July 2, 2019
A 30% correction in six days, which we have got, is in fact plenty for correction within a Bitcoin bull market. Looking below, we see the full illustrated history of pullbacks during the 2015-17 bull market.
Although the present correction, if it is finished, will have been on the shorter side, it would still be completely within our expectations.
We aren’t out of the woods yet, and we must watch the levels described above. A retest seems more than likely – and if it doesn’t come, all the better.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.