Is A Bitcoin Correction Needed to Push The Price Higher; Slow and Steady Wins the Race
- Bitcoin makes a retracement to $10,300 level on the way down from $13,900
- Claiming victory at $13,900 means, all bets are off
This week, Bitcoin has been riddled with hype and volatility. We got to see a new high of 2019 that was registered for the first time in 18 months at $13,900. But soon enough, we took a tumble down of 18 percent.
This volatility continued as yesterday we went down even further to about $10,300 level on Bitstamp.
This move was expected as it was backed by strong trading volume of more than $6 billion on ten exchanges with real volume. This was the first time bitcoin registered this much volume as even the move upwards to $10,000 or $13,000 didn’t see volume more than about $5 billion.
Currently, we are sitting at $11,765 with 24 hours loss of 2.20 percent with 24 hours volume of $5.14 billion.
BTC had monthly and quarterly resistance present at $13,800-13,900 which had been a battle of “magnificent foes.” David Puell, head of research at Adaptive Fund had called out a few days back adding that it would be a “bloody and tiresome” fight.
Had the flagship cryptocurrency managed to claim the victory, all bets would have been off.
$BTC: About to battle magnificents foes, the monthly and quartely resistances at $13,800-$13,900.
Fight might be bloody and tiresome, but once we claim victory, lads, by all means, all bets are off… pic.twitter.com/Yaon5Ly6vx
— David Puell (@kenoshaking) June 25, 2019
After seeing a strong monthly performance which is good for crypto, correction like such was sudden but expected and needed for the bitcoin market. As Hunter Horsley, CEO of Bitwise says a 40 percent move in a day is bad for crypto.
We are on our fourth parabolic bull phase in Bitcoin’s decade-long history. During the previous cycles as well, we went through numerous pullbacks, just in the last bull cycle we registered nine such corrections.
Moreover, detractors use it as evidence of bubble and this gets regulators nervous about the harm while professional investors, that are already interested, worry that “they'll now be accused of bandwagoning,” Hosley said.
So, it only makes sense the abrupt uptrend Bitcoin saw from $10,000 to almost $14,000 needed more time.
As OKEx’s head of operations, Andy Cheung says a step back is required to have an even bigger jump. In the grand scheme of things, this correction is just a blip on the radar as BTC is aiming for much more than just $20,000.
Sometimes, correction is just needed so that we can go far further. See the big picture, then you'll see where we are heading. pic.twitter.com/ZabxMWbeM7
— Andy Cheung (OKEx) (@AndyC0125) June 27, 2019
To put it in Hosley’s words – “Slow & steady wins the race.”