Are We Headed For a Bitcoin Price Correction Anytime Soon?
Are we in for a Bitcoin price correction anytime soon? Bitcoin has been relentless in the last few months as the price keeps on rising up. Bitcoin has pretty much outperformed everything recently, but how long will this run up last?
Bitcoin has once again surged to new yearly highs, and at time of writing the BTC price is sitting at $16,420. Highs we haven’t seen since January 7, 2018.
The Bitcoin price was at $7,231 at the start of 2020, and is the best performing asset of the year. All this despite its biggest daily drop in history, when the BTC price plummeted 55% on 13 March.
Since the lows of that day, Bitcoin has risen over 300%, as huge Wall Street names have come out publicly advocating it, and even public treasuries have started adopting a Bitcoin standard and making BTC a part of their balance sheet.
How Long Will The Bull Run Last?
With the Bitcoin price daily candle closing above a key support level in the low-$16,000s, it seems like we are heading higher.
But how long will this run continue? Many are waiting for a correction, but it’s just not coming, as yet.
Some analysts are expecting a retracement, however. Despite consistent closes above key support levels, some believe a retracement lower is more likely.
Of course, a price correction would be healthy for Bitcoin. And if we go by whale activity we could be set for a correction.
According to CEO of CryptoQuant, Ki Young Ju, 85% the amount of whales depositing BTC in exchanges is ramping up. In preparation for a Bitcoin price correction, maybe?
The chart above, shared by Young Ju on Twitter, highlights a potential correction coming up. The analyst says the whale ratio 24hr MA hitting over 85% is likely to lead to a drop. ‘The last time it was this high was before the sell-offs in 2018 and 2020,’ says the analyst.
Mid-Term Analysis Points Towards Bitcoin Price Correction
According to analyst Vikinsa, the Bitcoin price is about to complete a W pattern on the monthly time frame between $16,280-$17,000.
The analyst says if this plays out, a ‘high probability Sell Fibonacci Confluence Zone with multiple fibonacci levels from multiple time frames coming together,’ which most likely leads to retracement in the BTC price.
If the W pattern plays out and the Bitcoin price corrects, the chart suggests we will have major support at $13,493. And if support breaks, then the next leg down will be $11,456.
Not Everyone Is Expecting a Bitcoin Price Correction Anytime Soon
Popular analyst Bitcoin Jack is expecting this bullrun to go higher, pointing out CNBC is now shilling Bitcoin. A sign that another run up is inevitable before a correction, according to the analyst.
‘It is all happening right in front of our eyes,’ says Bitcoin Jack. ‘Give the fomo a few days to pick up and don’t fade it too early, but a small fomo army is about to get trapped soon. A top is near.’
The analyst is clear that he sees the long term Bitcoin price going up, but with CNBC about to trigger some fomo, a run up and then a ’30-35% correction’ by November 24 is his prediction.
Bitcoin PermaBull Max Keiser Predicting a Run To $28k
Bitcoin permabull Max Keiser has been bullish on Bitcoin for a long time, and the Keiser Report anchor believes the BTC price is headed straight to $28k.
Keiser has regularly tweeted his bullish $28k Bitcoin price prediction, before we see a price correction. And then from there we are headed towards six-figures, according to Keiser.
There is hardly any resistance between here and a new all-time high. Back in 2017, Bitcoin crashed quickly from near $20k to just under $16k a few days later.
There was a brief attempt to reignite the bullrun in January 2018, and a high of $17,314 on January 7, 2018 is the only bit of resistance we might encounter.
Once a new all-time high is in, it’s clean air all the way. And being so early in the halving cycle, who’d bet that we won’t see a six-figure Bitcoin price?
Bitcoin Price Predictions Are Wrong Until They’re Right
It’s hard to determine the way the BTC price will go short term. Many have been waiting on the sidelines since $12k, $13k for a correction, hoping to buy at a discount.
Truth is, even at $16k Bitcoin is a discounted buy. Just ask Michael Saylor who got in before 99% of Wall Street. When the Wall Street stampede picks up we won’t see these prices again.
Bitcoin price predictions are mostly wrong, or early, or both, and we could see a retracement anytime soon. That said, it’s hard to see the price not going up in the mid term.