An extremely changeable market over the weekend saw the $BTC price finally close below the previous all-time-high of $69,000. Could this be a sign that we are in for a much deeper correction?
Much price volatility
After a 6% dive for the bitcoin price on Saturday, this was followed by a 4.7% rally on Sunday. This strong volatility in price has been apparent ever since $BTC rose to take out the previous all-time-high of $69,000, with as much as a 6% drop last Tuesday, a 5.6% gain the preceding Monday, and much chop and change since then.
That said, the position now is a bit more precarious for $BTC. The failure to make a weekly close above $69,000 could prove to be a sign that last Thursday’s new all-time-high of $73,800 could have marked the top, and that we are now going to experience a much deeper correction.
Uptrend is broken
Source: Coingecko/Trading View
As can be seen in the chart above, the uptrend from $51,000 has now been broken, and the $BTC price looks to be rejecting from $69,000. Now would be an ideal time for the bears to take control if they are able to.
$BTC rejection?
Source: Coingecko/Trading View
Zooming out on the weekly time frame, things do look a lot cleaner and clearer. Should the rejection from $69,000 be confirmed, the major supports are at $65,000, $59,000, and $51,000. If the price came all the way back to $51,000, this would be a really healthy 30% correction. For those looking to get into this market, and for those already here with cash on the side, such a dip would be manna from heaven.
A supply shock like no other
However, with all this said, the buying into the Spot Bitcoin ETFs isn’t likely to dry up any time soon. Therefore, the course for the market over the next few months is anything but clear. Diminishing $BTC supply going into a halving, where the supply will be further cut in half, is a recipe for a supply shock like no other. Caution is advised for those trading this market.
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.
