The thrilling, hopeful, and beautiful upswing that has been going on for months was exciting. Sleepless nights have been ongoing for 2 years. Investors who couldn’t sleep with joy for the past few months were anxious about the fear that Bitcoin would fall to $12,000 levels in the previous 15 months. So, what does the correction that started with the opening of Asian markets today mean for investors?
Has the Rise of Bitcoin Ended?
The BTC price is currently finding buyers at $41,967. The rapid fall from the annual peak range of $44,000 cleared hundreds of millions of dollars in leveraged positions. The sell-offs due to the indicators giving a decline signal and the investors focusing on profit sales due to the busy agenda of this week triggered a 7% decline.
The sharp pullback on the daily chart caused losses of over $300 million. Investors who suffered huge losses in long positions did not expect it to be this fast. Usually, there are breaks after big rises but high-profit wallets triggered more.
However, when examining the daily chart, this movement seems like a small break on the long-term upward journey. Moreover, the RSI has relaxed, which is promising for further increases. The real important move will start with US data and Fed decisions on Wednesday. If the Fed suppresses optimism for the coming year, we may see serious losses.
Decision Time for Cryptocurrencies
Now it’s a clear decision time for the markets. If the BTC decline deepens, we will see much bigger losses in altcoins. However, if the king cryptocurrency continues its sideways trend in the $42,000 range, this could be a good recovery opportunity for altcoins.
At the time this article was prepared, the price was exactly in the decision area. We have seen how the important levels of 31,860, 28,050, and 25,200 dollars have worked since 2021. Now we need to convert the $42,000 area to support in the same way as previous resistances have turned into support.
The fact that the BTC price is still above the above-mentioned turning point levels and the last rise trend is strong enough to easily overcome small resistance levels tells us that the upward trend will continue. This may remain as a correction movement rather than a reversal.
We have seen similar correction movements in previous bull seasons. In fact, we even saw this in bear markets when it worked the opposite way. After BTC experienced sharp declines, it saw recoveries exceeding 7%, investors were hopeful, but again, the movement was in the direction of the trend after these upward corrections.
However, investors should not forget that bull corrections can extend up to 20% and even surprise but low-probability news such as ETF rejections can reverse the trend. Crypto is always full of surprises.
