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?
Sourced From: cointelegraph.com/news/bitcoin-price-crashes-below-48k-but-is-the-bull-market-in-danger
Published Date: Mon, 22 Feb 2021 14:31:17 +0000