Bitcoin has been started getting the recognition as the true store of value since quite some time now. But when we saw the correction yesterday, many started doubting the whole crypto market.
BTC price fell drastically yesterday and tapped $30,000. We saw a 30%+ price drop in BTC in the past 24 hours and a more than 50% drop from its all time high price. There were a lot of factors which added to this major correction in BTC price, both fundamentally and technically. Many altcoins suffered more than 40% loss in the past 24 hours. We will discuss the technical reasons for this drop and try to analyze if this drop is over.
Let us review BTC Price.
BTC/USD – Price Prediction – Daily
BTC broke the support of $42,000 area which was a crucial support zone. Once this zone was broken, there was absolutely no support till $30,000 which led to a drop of BTC till that zone. For BTC to continue the bullish momentum, it has to quickly claim back the $42,000 support area and stay above the same. Next target to flip to invalidate the bearish scenario would be to move above $46,000. If these two zones can be claimed, we could start targeting new all time high for BTC.
If $42,000 cannot be reclaimed back and gets rejected, we could see a move down towards $30,000 area once again.
BTC/USD – Price Prediction – Weekly
In the weekly graph as well, we can see a good support at $42,000 area. A break of that led to a drop towards $30,000. Its crucial for BTC to claim back this zone for the continuation of bullish momentum
BTC/USD – Longs
There was a small decrease in the number of BTC/USD longs during the drop and the daily candle now looks stable which indicates that number of longs will start increasing.
BTC/USD – Shorts
There was a sharp decrease in the number of BTC/USD shorts after yesterday’s dump which indicate that the selling pressure is now almost over and we could start seeing a quick rise in BTC price once it reclaims back the support area.
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