August 12, 2022

Bitcoin price crashes below $48K, but is the bull market in danger?

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Bitcoin’s (BTC) price has been grinding up nicely over the past few weeks, but the past 24 hours have seen a significant correction. BTC price dropped by over $10,000 from $58,000 to under $48,000, a correction of almost 20%.

This pullback — which many anticipated as 28,000 BTC was deposited to Gemini — also caused other cryptocurrencies to fall alongside Bitcoin, resulting in Bitcoin’s market dominance rising as a result.

But will history repeat and produce a dull, corrective March? Let’s analyze the charts. 

Bearish divergence implying further downside to come

BTC/USDT 4-hour chart. Source: TradingView

Markets never go up in a straight line, and corrections must occur from time to time. This can be considered a “reset” for the market, which reverts back to the mean trendline, and the euphoria fades.

At the first stage of a correction, people still expect the corrective move to be a tiny correction, while the sentiment slowly starts to shift. The moment the correction continues, the lower the price goes, the worse the sentimentTitle: Bitcoin price crashes below $48K, but is the bull market in danger?
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Published Date: Mon, 22 Feb 2021 14:31:17 +0000