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Watch these two levels if the price of bitcoin sees a big correction before $ 20K



Bitcoin (BTC) is on the move, printing a new high every day. After officially setting a new all-time market capitalization record, will Bitcoin finally break this elusive $ 20K barrier again? Or will we see a big correction first?

When correction?

BTC / USD 1-week chart. Source: TradingView

It’s hard not to get excited when looking at the weekly bitcoin chart. In the last 30 days, Bitcoin has undergone a real parabolic run. But he will still regain the previous record, which is only 1

0%.

However, as the saying goes, what goes up must go down, and at the moment everyone’s question is “when is the correction?”

The Doomsday scenario for Fibonacci correction levels paints a grim picture of a 50% correction to .618 of about $ 9,000. But in the case of bulls after half-distribution, should the moves be prepared? Or will previous levels of resistance serve as a pillar of Bitcoin’s stairway to the moon?

BTC / USD 1 daily chart. Source: TradingView

The daily bitcoin chart hints at levels that people may be able to stop a little better, with the previous resistance of $ 17,000 being the first level of support to hold before potentially falling to 14,000 and 12,500 dollars.

While this would represent a nearly 25% drop in the price of bitcoin, it would be a “healthy” withdrawal, allowing the king of cryptocurrencies to entice more retailers to step in and buy a dip and potentially push the price above the key level. from $ 20,000.

At the moment, you may be screaming in disbelief, wondering how the hell that would be healthy. The fact remains, however, that at some point we must have a correction, and the higher the price, which continues to rise, the steeper the correction will be.

In other words, it is important for Bitcoin to find a new local bottom if BTC wants to climb to new record highs.

The strong trajectory of bitcoin

BTC / USD 1-HOUR chart. Source: TradingView

The increase in the BTC / USD on the hourly chart provides a different outlook, showing a structure that has been valid since early November. This indicates that bitcoin is currently over-expanded and has already eavesdropped on middle channel support after hitting the top of the channel.

If the structure remains intact, this view outlines a shortfall of only 9% over lower channel maintenance of about $ 16,285. But for now, the previous resistance of about $ 17,000 seems to be doing pretty well.

If Bitcoin breaks the upper resistance of the channel around $ 19,000, then it may turn out that we already have our correction, which will catch those who are trying to cut the local peak.

The data from the heat map shows that the channel will be retained

BTC / USD 1-hour chart. Source: Tensorcharts

Tensorcharts’ Heatmap data shows that there are walls selling for $ 18,500 and $ 19,000, indicating that the whales are paying attention to the current uptrend channel.

Interestingly, there are multiple walls for purchases between $ 17,800 and $ 17,000, which further signals that the top of the channel is the range in which bitcoin can expect to remain in the coming days.

However, once $ 19K appears, there is very little in terms of resistance before Bitcoin continues to print new peaks, and if you want to know what that level is, I suggest you buy a crystal ball.

The bearish bitcoin scenario

If middle channel support of $ 17,000 fails, the last level that can be maintained is around $ 16,285 to invalidate the current structure. From here, I would expect the next logical floor to be found around the $ 14,000 region.