Bitcoin’s Needed Correction Could Go As Low As $6.6k For A Healthier & Sustainable Run To New ATH
- BTC likes to retrace deep in bull markets & that would happen by looking “terrible”
- The Psycho Bot flipped short, meaning either about to enter chop or dump
Just like May, we have ended July on a bit lower note.
In May, we went up as above $9,000 but ended the month at about $7,950 level. This time as well, we climbed to $13,900 but closed this month below $11,000.
In the past 30 days, the value change in Bitcoin price has been 27.7 percent as we currently trade at $10,998 with 24 hours loss of 6.86 percent.
Meanwhile, it is managing the daily trading volume of $2.48 billion, per Messari’s Real 10 exchange, 24 hours volume that is much lower from last week’s that oscillated between $4b to $6 billion.
Currently, the reds bring good news for bears, as pointed by analyst DonAlt.
Providing a monthly update on Bitcoin price, DonAlt says the “chart looks like ass.” However, it isn’t a bad thing because in a deep bull market like we are currently in, having surged 135 percent in the past 90 days, Bitcoin likes to retrace. And the only way to do that as DonAlt says is by “looking terrible.”
Going forward, Bitcoin had support at $10,300 which further dropped down to $9,500 and resistance present at $11,500. It’s to be seen which will Bitcoin hit first in order to confirm the trend we would follow then.
$BTC was below $4k this year and I cannot find a bull on the stream today. I like it.
— Bob Loukas (@BobLoukas) July 1, 2019
Meanwhile, The Psycho Bot has signaled a BTC short from $10,758. In response to this analyst, Altcoin Psycho said this means we are either going to trade sideways before making our way up or get dumped.
The Psycho Bot has finally closed its $BTC long from $7998 and flipped short.
This usually means we’re about to enter chop before another move up or we’re about to dump https://t.co/qTvRE6ZMoZ
— Altcoin Psycho (@AltcoinPsycho) July 1, 2019
Echoing the same thoughts, CryptoKea shared how on the basis of Trace Mayer Multiple, Bitcoin is up for a correction.
The first one was called out by him on June 24 at around $13k and on June 26th after touching $13,900, we crashed to $10,300.
Now the first major correction target has been hit, CryptoKea further talks about the potential downside target.
Bitcoin could see a nasty retracement to as low as $6.6k, Source:https://twitter.com/CryptoKea/status/
6/ Now that the first major correction target in this cycle got hit at 2.5x the 200 DMA, let´s have a closer look at the potential downside target. In order to do this, let´s first have a look at two major channels which #Bitcoin likes to trade in during a bull market to better
— CryptoKea (@CryptoKea) July 1, 2019
When the bull market accelerates and FOMO takes over, the price overshoots and gets into “bullish overextension,” explains the analyst. If Bitcoin repeats the similar retracements as the previous cycle, we could get down “1.20x, 1.26x, or 1.41x the 200 DMA.”
As the 200 DMA keeps moving with every daily price close, this puts the retracement range at $6.6k to $$8.5k.
Though a “nasty” retracement, the analyst says this “was still a “natural” retracement in 2012 as it was in 2017.” This he says will land us back into the bullish channel.
For a much healthier and sustainable long term run up to a new all-time high, it could be considered a “needed correction.”