Bitcoin has seen an extremely strong correction since its local highs around $ 19,500. The leading cryptocurrency is currently trading almost exactly at $ 17,000 but recently dropped to $ 16,200.
That means the leading cryptocurrency was down more than $ 3,000 from its local highs.
Many have not properly coped with this correction: a few days ago many were pregnant Bitcoin to set off for new record highs, citing a confluence of technical and fundamental trends.
But this meeting actually turned out to be a somewhat bullish candle, despite what conventional wisdom would have some believe. BTC actually bounced at an extremely important macro level.
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Despite a fall, Bitcoin is a bullish candle
In fact, Bitcoin’s strong correction of USD 3,000 stopped an extremely important macro-technical level: USD 16,200.
A merchant shared The chart below after the burden of the downtrend, showing that Bitcoin’s weekly candle bounced at the all-important macro level. As he shows, the importance of the level goes back to the highs of 2017/2018. The chart shows that Bitcoin actually topped out at $ 16,200 after a bouncing dead count after the week the mint corrected 40%.
Bitcoin finding weekly support here could confirm that the uptrend remains intact.
It is important for BTC to trade above USD 16,200 for the next two days to confirm the level as tech support.
Chart of BTC's price action over the past few years with analysis by crypto trader Alejandro (Pastore1314 on Twitter). Source: BTCUSD from TradingView.com
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However, Bitcoin could face another lower leg.
Ki Young Ju, the chief executive of crypto data analytics firm CryptoQuant, recently noted that whales have deposited a greater amount of BTC into exchanges than usual:
“BTC whales deposit on exchanges. I expect short-term dumping. All exchanges average intake (144-block MA) hit 2 BTC. I think we are in a danger zone. The price is likely to go sideways or down when whales are active on exchanges. “
Investors can sell those coins, which could result in a further sell-off.
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin's Recent $3,000 Correction Actually Formed a Bullish Candle