10 percent bitcoin pullback – what next?

Bitcoin suffered its biggest pullback since September 2023. Will the price recover here, or is this just the beginning of a major 30% to 40% reversal?

A bad Monday

From a local top of $44,700, bitcoin dumped all the way down to $40,200 over the course of the last three days. Monday was the worst day, as $BTC recorded a more than 8% dive.

Buy physical gold and silver online

For sure, as far as bitcoin is concerned, a rapid 10% drop isn’t a particularly big deal, but taking the 8% hit on just one day may have perhaps made some holders more than a little nervous.

Recovery initiated?

The good thing for the potential fightback is that the price did recover around 2.5% by the end of the day on Monday, and Tuesday has seen $BTC lift another 1.5% on the day so far.

Source: Trading View

Looking at the chart for bitcoin, the ominous looking M top pattern has played out. The fact that $BTC is now consolidating nicely above the 0.382 fibonacci level on the daily time frame is certainly something to celebrate. A bounce from here, rather than the 0.618 is also bullish.

$BTC trend line still intact

Source: Trading View

$42,000 through to $43,000 is providing some solid resistance, and therefore it is only normal to see a rejection from this level. The trend line stretching back to mid-October provided support at the bottom of the bitcoin dump, and so perhaps we will see a resumption of bitcoin’s trek towards that all-important $48,000 price level.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About the author

Why invest in physical gold and silver?
文 » A