Published 5 hours ago
A decisive bearish breakdown from the combined support of 0.786 Fibonacci retracement level and $18250 encouraged Bitcoin for longer correction. With sustained selling, the BTC price will get further discounted, and interested investors can accumulate at a cheaper price. Thus, here are three reasons why you buy bitcoin in this correction.
Source- Tradingview
1)Long Retracement is Common in Bitcoin
Amid the ongoing downfall, the Bitcoin price has tumbled 75.49% from an all-time high of $68,789. Though several investors think that it is an aggressive downtrend, the historical records show this long correction is common for Bitcoin.
On 17th December 2017, Bitcoin reached a high of $19660, but the following correction plunged the price 84% to reach around $3150. Similarly, the coin price turned down from the $13850 mark in late June of 2019 and slumped 72% down before starting the next bull cycle.
Thus, the market participant believing that Bitcoin will eventually rise higher can look for entry opportunities in this current dip.
2)RSI Indicator Rising
The Relative Strenght index(RSI), measuring the speed and magnitude of the coin’s price action, reflects the underlying ongoing trend. Therefore, the RSI slope is rising despite the last two lower lows in Bitcoin price, indicating demand pressure is rising.
This bullish divergence indicates the Bitcoin price is likely to witness a near-term recovery.
3)Bitcoin Price Following A Bullish Continuation Pattern
The weekly time chart showcases the Bitcoin price resonating inside a falling wedge pattern. The core concepts of this pattern suggest the losing bearish momentum as the price action wobbles better two converging trendings indicate the seller’s failure to bolster deeper correction.
As a result, the coin price is expected to eventually break the overhead trendline and trigger a directional price rally. Thus, if the market sentiment improves, the ideal target for this pattern would be $25460.
Current Price Action
Amid the November second week’s downfall, the Bitcoin price gave a massive breakdown from the combined support of 0.786 FIB and $18250. Furthermore, the recent recovery in the Bitcoin price must be a retest phase to validate the resistance power of the breached level.
Therefore, If the selling pressure persists, the Bitcoin price may drop to the $13850 or $12500 mark.
- Resistance Levels: $18250 and $21850
- Support Levels: $13850 and $12500
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/3-reasons-to-invest-bitcoinbtc-as-we-approach-2023/