BTC possible deep correction may happen this year
Updated
I have been observing this for the past week and found out that this multiple rejections from 59k could trigger a possible deep correction. We can assume that it is consolidating now and may pump in the next days but the possibility of a deep correction isn't out because BTC is in a bull run for how many months now without a healthy correction. I am not saying that BTC will going to have a deep correction now but what I am trying to share is that there is a big possibility that this continued rejection may start a shake out to holders above 60k that could affect the market as a whole. Incase this happens, I have plotted some possible levels that the price can go if supports won't hold. Technically, this supports haven't been retested and revisited that much but if correction happens, this are the strong barriers that we can hold on to. Our last line of defense would be the 40k level.
How I see the Technicals, it is saying that the candle pattern (daily chart) can indirectly be considered a triple top from 59k which can be a sign of a reversal.
How I see the Technicals, it is saying that the candle pattern (daily chart) can indirectly be considered a triple top from 59k which can be a sign of a reversal.
Note
19/05/2021Our 40k forecast was reached.
Fundamentals in the short term is pretty bad due to successive major bad news from Bitcoin; from Elon Musk withdrawing and now Chinese warning about the coin. One more major bad news this May, and 40k might not hold. Alot of investors are now being shaken.
Technically, this should bounce on this psychological support @ 40k. Our next rally would be to break 50k or else down trend will continue up to our worst case scenario.
Trade closed: target reached
40k didn't hold.Technically we were expecting for a bounce on its psychological support. Sad to say, buyers got overwhelmed by the sellers after 42,800 didnt hold. It reached up to 30k level on the sell off.
One of the main reasons that triggered the correction was the major bad news from BTC, from Elon withdrawing and got hit so hard when China bans crypto as the finishing blow.
We may update some new forecasts of BTC and other cryptos in the future so please follow me here on tradingview. For now, I will consider this already as "Target Reached" and will close the forecast. :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.