Lorenzo Stroe
Independent Analyst
- BTC is currently trading at $12,759 after slipping below a critical support level in the short-term.
- It seems that Bitcoin is facing a correction period in the upcoming days.
Bitcoin had a major breakout towards $13,000, cracking this psychological level and climbing as high as $13,245 on some exchanges. Many analysts expected the flagship cryptocurrency to have a slight correction period before returning to its bullish uptrend.
Bitcoin drops below $12,800 and losses crucial support level
On the 1-hour chart, Bitcoin's price was trading above the 50-SMA, keeping it as a support level; however, in the past hour, bears have managed to push BTC below this point and broken another crucial support level.
BTC/USD 1-hour chart
-637390686800647201.png)
The Bollinger Bands were squeezed, indicating that a major price move was underway. The lower band was also acting as a healthy support level. However, the recent bearish breakout could drive BTC down to $12,500 where the 100-SMA is located and as low as $12,000, a vital psychological support level.
The bullish side of things
Despite the recent correction and bearish breakout, the overall momentum of Bitcoin remains bullish. The flagship cryptocurrency needs to climb back above the lower Bollinger band and the 50-SMA and turn it into a support level again.
BTC IOMAP Chart
The In/Out of the Money Around Price chart continues showing very little resistance to the upside. The most significant resistance area seems to be contained between $12,803 and $13,169. A breakout above this point can easily push BTC up to $14,000.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.