Bitcoin has again fallen below its resistance point of $ 47,000. This time around, the price of the digital asset seems to have turned its attention downward. While this downward correction continues, it is important to understand where this correction could lead. Falling prices are not a new concept in bull markets. In fact, prices are often expected to decline following a digital asset price rally.
Related reading | Why an 18% decline in Bitcoin could still be bullish
This drop in price is usually a regression of the market. Not necessarily pulling out of the asset. Bitcoin had only recently broken through $ 50,000 and did not stay in that position for long. So a small downtrend will most likely result in a rebound that will push the price back above $ 50,000. With a consolidation point that puts the digital asset in a reasonable position above $ 50,000.
Bitcoin setup for a new all-time high
In order for Bitcoin to reach a new all-time high as expected by the market, several factors play a role. Simply put, for this price jump certain signals would have to be triggered. Bulls are still in the majority right now, but it’s no secret that the bears are determined to push the asset’s price down.
BTC price will hit the new ATH when the rebound goes above $ 49,000 | Source: Twitter
This has caused Bitcoin price to make its first weekly bear on the run-up. As expected, the bears are trying to consolidate the market. Dragging the BTC price down to retest the $ 40,000- $ 45,000 range in the coming days. Current trends over the past 24 hours could very well put the market on track for this breakout level. Unless BTC sees a U-turn.
Related reading | Puell Multiple: The Bitcoin Metric That Says BTC Miners Are Not Ready To Sell
While below $ 45,000 is more than likely, BTC price soaring above $ 49,000 is very likely to mark a departure from current bear trends. Not only will this completely weaken the bears’ position, but it will also trigger a run towards $ 60,000.
Time to buy?
Despite the recent slump, market sentiment hasn’t moved much. The Fear & Greed Index shows that the market has meanwhile moved out of “extreme greed”. But in general he’s stuck in greed with a current score of 75.
The current price of Bitcoin is primarily a buying opportunity for investors in the long run. Also known as a diamond pointer. If you lose more than $ 3,000 in a 24-hour period, the price will usually recover. The weekend will most likely usher in a spike in trading volume with BTC rebounding above its crash point.
BTC price drops below $ 47,000 | Source: BTCUSD on TradingView.com
As of this writing, BTC is trending around $ 46,600 with a total market cap of $ 881 billion. At the beginning of the week, the price broke over $ 50,000. Current trend patterns indicate that the asset will usher in the weekend below $ 50,000.
Featured image from The Independent, charts from Twitter and TradingView.com