Bitcoin finally fell after a week of a bull run. It is a natural development considering how quickly Bitcoin has grown. But, even though some people in the market are disappointed with the current downtrend of the digital asset, it’s important to consider the implications for this correction. It may be more beneficial than harmful in these times.
Does This Correction Make You Feel Bad?
There will be an inevitable correction as part of any uptrend. This correction can either be good or bad, depending on market conditions. After making substantial gains this week, bitcoin is now in a trend of recovery. This is a positive sign for bitcoin, given the current market.
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Bitcoin was able to reach as high at $47,000 during the last rally. This had helped to cement the cryptocurrency’s place in the bull trend. But, with so much momentum built up, there were bound to be drawbacks and that resulted in a decrease in value.
This is why corrections in bull rallies can be so beneficial. These corrections allow indicators that are too high in the market to adjust their value and become more attractive to investors. This correction has opened up the possibility of more money entering the market.
BTC support level at $45K | Source: TradingView.com
The support level that bitcoin can not drop below is still there, so it poses a risk for the asset. Bitcoin will continue to be bullish as long as it holds above $45,000. This could mean that bitcoin will see a huge bounce. Most likely, it will be during weekend liquidity.
Bitcoin Must Be Held
Bitcoin is showing a bullish trend in the near term. This is the main problem now. The digital asset must beat the simple moving average of 100 days to consolidate its position. While it trades above the threshold, this margin is still small. This BTC could regain a bullish tendency over the long-term if the bottom of the correction is above $45,600.
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It remains a buyer’s market although how long this last will be determined by the performance over the next week. Another massive rally will be possible if the price breaks above $47,000. But $48,000 is a tough fight given the low momentum.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Featured Image from FXComfort. Chart from TradingView.com