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.
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.
