The current Bitcoin price correction has affected almost the entire altcoin market that has been trapped in a similar correction phase.
The leading crypto asset by market capitalization has been in a correction phase in the past week. Bitcoin price correction has led the asset to a critical crossroads where the bulls have to take over to secure a new all-time high.
The asset has dropped from its all-time high of $58,640.77 recorded a week ago to trade around $46,185.95 at the time of reporting. Hereby reciprocating to a drop of approximately 20%. However, do not be deluded as the asset has gained significantly in comparison to the traditional stock market.
According to metrics provided by CoinGecko, Bitcoin price has gained approximately 438%, and 35% in the past year and one month respectively. The asset has gained favor in most institutional investors, thereby leading to its exponential growth.
Closer Look at the Current Bitcoin Price Correction
According to different reports on Bitcoin, the current Bitcoin price correction is very healthy, particularly in the ongoing bull rally. The reason because the asset will have established strong support for future reference. Besides, it is giving interested investors a chance to hop in and buy the dip. Similar Bitcoin price corrections from the 2017/2018 bull rally are visible on the weekly chart. Thereby indicating the asset could explode further from here. Moreover, Bitcoin is currently in the price discovery mode and every correction means a support or resistance level.
From the technical point of view, the current Bitcoin price correction is retesting support that was made earlier last month. In addition, the current Bitcoin price is hovering around the 200 moving average in the 4-hour chart. Notably, the asset is making higher-highs and higher-lows on the daily and weekly chart. Such a feature is attributed to a strong uptrend where the bulls are mostly in control.
It is the beginning of a new month, Bitcoin has now been on the uptrend for the past five months. Notably, the monthly closes according to Heikin Ashi indicates a strong uptrend. Besides, the weekly closes for the past 20 weeks show a similar result.
However, anything is possible, especially in the crypto industry. The current Bitcoin price correction could turn into a bear market in the coming weeks. The bulls could only be rejuvenated if the institutional investors continue adopting Bitcoin in large numbers.
In the past few months, we have seen major international companies led by Tesla Inc (NASDAQ: TSLA) adopt Bitcoin as a hedge against the fiat system. Other notable firms that have entered the crypto market in the recent past include BNY Mellon, asset manager BlackRock Inc (NYSE: BLK), and credit card giant Mastercard-backed cryptocurrencies.
The current Bitcoin price correction has affected almost the entire altcoin market that has been trapped in a similar correction phase.
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