Bitcoin has seen an extremely sharp correction since its local highs of around $ 19,500. The leading cryptocurrency is currently trading for almost exactly $ 17,000, but just recently fell to $ 16,200.
This means the leading cryptocurrency is down over $ 3,000 from its local highs.
Many did not take this correction well: just a few days ago, many expected Bitcoin to hit new all-time highs, spearheading a confluence of technical and fundamental trends.
But this rally actually formed a somewhat bullish candle, regardless of conventional wisdom some might lead some to believe. BTC actually rebounded on an extremely important macro level.
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Bitcoin forms a bullish candle despite drops
Bitcoin’s strong $ 3,000 correction actually halted an extremely important macro-technical level: $ 16,200.
A dealer divided The chart below, after the brunt of the downtrend, shows that Bitcoin’s weekly candle bounced off at the all-important macro level. As he shows, the importance of the level goes back to the highs of 2017/2018. The graph shows that after a dead count bounce after the week the coin corrected 40%, Bitcoin was actually at $ 16,200.
If Bitcoin finds support here on a weekly basis, it could confirm that the uptrend remains intact.
It is important that BTC trades above $ 16,200 in the next two days to confirm the level as tech support.
Chart of BTC's price action over the past few years with analysis by crypto trader Alejandro (Pastore1314 on Twitter). Source: BTCUSD from TradingView.com
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Bitcoin could be a leg lower, however.
Ki Young Ju, the managing director of the crypto data analytics company CryptoQuant, recently noted that whales have deposited a larger amount of BTC on the exchanges than normal:
“BTC whales deposit on exchanges. I expect dumping in the short term. All stock market inflow averages (144 block MA) reached 2 BTC. I think we are in a danger zone. The price is likely to move sideways or down when whales are active on exchanges. “
Investors may sell these coins, which could lead to another sell-off.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin's Recent $3,000 Correction Actually Formed a Bullish Candle