BTC/USD Daily Chart
A crypto analyst “CryptoBirb” noted that Bitcoin typically faces two types of correction: 15% and 30%. Stating further that while he is expectant of a 30% correction to $14,000 which remains uncertain, likewise he is expectant of ATH before Christmas. Historically, in the previous bull cycles, BTC plunged 30%–40% before continuing its rally.
Some analysts think that BTC likely bottomed at the weekend due to market trends, but sell-offs during a bull market can become overextended prompting the question of what chances do the bulls have? These two factors may provide some direction:
1. A Sustained Break of $18,000 Is Essential for BTC to Regain Bullish Momentum
In this recent sell-off, an analyst noted on some lower time frame signals that critical resistance levels have begun forming at the $18,000 level. This became obvious when the BTC price touched down at the support level at $17,200, rebounded slightly, but met with rejection at $18,000. It established resistance at this level from its rejection wherewithal. It will need a clear break at $18k therewith to proceed further. The next barrier is found at the $18,600 level, which could not be confirmed as support in the previous uptrend.
Historical Bitcoin volatility. Courtesy: Highcharts
Macro investor Paul Tudor Jones using a fractal pattern hints that Bitcoin price is in an early stage of long-term rally like gold was in the 1970s.
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