Bitcoin (BTC) is on the move, marking a new high every day. After officially hitting a new all-time high by market cap, will Bitcoin finally break the elusive $ 20,000 mark again? Or will we see a major correction first?
When will the correction be?
It’s hard not to get excited looking at the weekly bitcoin chart. In the last 30 days Bitcoin has seen a real parabolic race. But it hasn’t hit its all-time high yet, which is only 10% away.
As the saying goes What goes up has to come down againand right now the question is on everyone’s lips: “When will he correct?”
The apocalyptic scenario of the Fibonacci retracement levels paints a bleak picture of a 50% correction from around $ 9,000 to $ 0.618. But do Hodlers have to prepare for a bull run after the halving? Or will the above resistance levels serve as support on Bitcoin’s ladder to the moon?
The daily chart for Bitcoin suggests levels that people might be able to withstand a little better as the previous resistance of $ 17,000 is the first support level to be held before potentially falling to $ 14,000 and $ 12,500.
This would mean a drop in the price of Bitcoin by almost 25%would represent a “healthy” setback, which would allow the big cryptocurrency to attract more retail buyers to step in and buy the dip, and The price may be pushed above the key $ 20,000 level.
You may be yelling at the screen in disbelief, wondering how the hell that would be healthy. The fact is, however, that at some point we must have a correction, and the higher the price continues to rise, the more pronounced the correction will be.
In other words, For Bitcoin, finding a new local floor is essential if BTC is to hit new all-time highs.
Bitcoin’s strong track record
A closer look at the BTC / USD pair on the hourly chart offers a different perspective, showing a structure that has been in place since early November. This shows that Bitcoin is currently overstretched and has already used the support of the middle channel after reaching the top of the channel.
If the structure remains intact, This view shows only 9% less than the lower channel support around USD 16,285. Currently, the previous resistance around $ 17,000 seems to be holding up quite well.
If Bitcoin breaks the channel’s overhead resistance by $ 19,000, then it could be that we already had our correctionwhich will surprise those who try to shorten the local ceiling unprepared.
Heat map data suggests that the channel is preserved
Heat map data in tensor charts show this There are sales walls for $ 18,500 and $ 19,000, Indicates that The whales pay attention to the currently rising channel.
Interestingly, there are several buying walls between $ 17,800 and $ 17,000, which further indicates The top of the channel is where Bitcoin is expected to stay for the next few days.
However, once $ 19K appears, there is very little resistance before Bitcoin can hit new highs. If you want to know what the price level is, I recommend buying a crystal ball.
The bearish scenario for Bitcoin
If the middle channel support fails for $ 17,000, The last level to be held is $ 16,285 for the current structure to become invalid. From here, you’d expect the next logical floor to be in the $ 14,000 region.
The bullish scenario for Bitcoin
Closing above $ 19,000 opens a whole new chapter in Bitcoin price history. Trying to predict where the price will go at this stage would be nothing more than a guess.
However, if you follow Blockcenter’s rainbow map, it seems Bitcoin is ready to switch from the “Hoard” color level to “Still cheap”. That puts Bitcoin at over $ 22,600 in the coming week.
Right now the point is to find out the prices and how many of us have waited three years for this moment I suggest you sit back and enjoy the ride.
The views and opinions expressed here are solely those of @offiziellkeith and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.