Bitcoin price is now trading under $19,000, after repeated failure to sustain above its former all-time high and flip the former record from resistance to support. Since then, the leading cryptocurrency by market cap has fallen $500, but it could be the beginning of a short bearish phase to reset market sentiment, indicators, and more, before moving higher toward new highs once again.
Bitcoin Loses $19,000: Is This The Start Of A Chaotic Correction?
Bitcoin price closed its daily candle last night above $19,150, and this morning the price per BTC dove to as low as $18,650. Support at that level has held thus far, but with the bullish momentum starting to fade, the first-ever cryptocurrency has begun to look a little heavy.
Bitcoin price dropped $500 in the early overnight hours, but more downside is possible | Source: BTCUSD on TradingView.com
The seemingly unstoppable cryptocurrency is still far ahead of nearly every other mainstream financial asset in terms of 2020 returns, even with the $500 per BTC pullback. And even if the momentum does turn downward, any downside is likely to be short-lived, bought up with fury, and the cryptocurrency will be right back chugging along in its bull market in no time.
Related Reading | “Most Profitable Buy Signal” Triggers As Bitcoin Consolidates Below ATH
But not even Bitcoin can go up in a straight line, and although it has for several weeks now, when momentum turns it isn’t easy to stop – as the asset has shown toward the upside recently.
Bitcoin corrections can get deadly fast, is this time really different? | Source: BTCUSD on TradingView.com
Crypto investors shouldn’t forget, that although Bitcoin is as bullish as it gets right now, it is still the same cryptocurrency that crashed from $20,000 to $6,000 in two months, then from $10,000 to under $4,000 in less than a month in 2020.
The fact that the market isn’t considering this factor, could be its undoing, as traders step in to long the “dip” and create an environment for a “long squeeze” downward.
Related Reading | “Cyclical Nature Of Bitcoin” Could Provide Clues On Continuation Or Correction
Bitcoin very well could correct extremely hard, yet still rise after to the predictions analysts are making for next year, ranging from $100,000 BTC to $400,000 BTC.
The message here is don’t rule out anything and considering how volatile Bitcoin can get, and be ready for all potential outcomes. It also is wise at this point not to trade the cryptocurrency, or risking learning the true value of the phase “HODL.”
Featured image from Deposit Photos, Charts from TradingView.com