19:29Bitcoin’s Recent $3,000 Correction Actually Formed a Bullish Candle
That means that from its local highs, the leading cryptocurrency was down by over $3,000.
Many have not taken this correction well: just days ago, there were many expecting Bitcoin to move towards new all-time highs, citing a confluence of technical and fundamental trends.
But this rally actually formed a somewhat bullish candle, despite what conventional wisdom may lead some to believe. BTC actually bounced at an extremely important macro level.
Bitcoin Forms Bullish Candle Despite Drop
Bitcoin’s strong $3,000 correction actually stopped an extremely important macro technical level: $16,200.
A trader shared the chart below after the brunt of the downtrend, showing that Bitcoin’s weekly candle bounced at the extremely important macro level. As he shows, the level’s importance stretches back to the 2017/2018 highs. The chart shows that Bitcoin actually topped at $16,200 after a dead count bounce after the week that the coin corrected 40%.
Bitcoin finding support here on a weekly basis could confirm that the uptrend remains intact.
It is important that BTC does trade above $16,200 for the next two days to confirm the level as technical support.
Source: BTCUSD from TradingView.com
One More Drop?
Bitcoin may face yet another leg lower, though.
Ki Young Ju, the chief executive of crypto data analytics firm CryptoQuant, recently noted that whales have deposited a larger amount of BTC into exchanges than normal:
Investors may be selling those coins, which may result in a further sell-off.
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