equitieswatch
Wednesday, May 31, 2023
About us
Advertise
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities
No Result
View All Result
Equitieswatch.com
No Result
View All Result

Why The Latest Correction Is Good For Bitcoin

by equitieswatch
April 1, 2022
in Cryptocurrency

Bitcoin has finally corrected downwards after being on a bull rally for the better part of this week. This is an expected development for a digital asset that has grown so much in such a short time. However, while some in the market lament this downtrend, it is important to look at what a correction like this might mean for the digital asset. Because it may do more good than harm in times like these.

Is This Correction Bad?

For any upward recovery, there is bound to be a correction. This can be either good or bad depending on the circumstances surrounding the market movements. This time around, bitcoin has begun a recovery trend after making significant gains earlier this week. Now, for the present market, this looks to be more of a good thing for the digital asset given where the price has landed.

Related Reading | Bitcoin Mining Difficulty Eyes New ATH As Block Production Ramps Up

Bitcoin had been able to hit as high as north of $47,000 during its last rally. This had helped to cement the cryptocurrency’s place in the bull trend. However, after building up so much momentum, there was bound to be a drawback and the result of that has been a declining value.

These kinds of corrections during bull rallies are always good. This is because they allow overbought indicators the change to reset their values to become good enough once more for investors. Paving the way for even more money to come into the market in the wake of the correction. 

BTC support level at $45K | Source: TradingView.com

Naturally, there remains a support zone that the digital asset may not fall below, hence it becomes a problem for the asset. As long as bitcoin is able to hold above $45,000, then the power still firmly rests in the hands of bulls meaning that the cryptocurrency is likely to continue in its current bullish path. If this is the case, then bitcoin may very well see a big bounce coming. Most likely during the weekend when there is less liquidity in the market.

Bitcoin Needs To Hold

In the short term, bitcoin has no problems registering a bullish trend. The main pain point now remains to solidify this position over the long term and in order to do this, the digital asset has to beat the 100-day simple moving average. It is already trading above this but it remains a small margin. If the bottom of this correction can stop above $45,600, then this BTC will revert to a bullish trend over the long term.

Related Reading | Possible Timelines For Bitcoin To Hit $100k: Why CEOs See Bullish Signs

It remains a buyer’s market although how long this last will be determined by the performance over the next week. A proper break above $47,000 will once again set the stage for another massive rally. However, $48,000 will be a hard-fought battle given low momentum.

Bitcoin price chart from TradingView.com

BTC trading above $45,000 | Source: BTCUSD on TradingView.com
Featured image from FXComfort, chart from TradingView.com

Source link

YOU MAY ALSO LIKE

BTC Below $20,000, ETH Slips Under $1,000 – Market Updates Bitcoin News

Bitcoin Breaches $19K Level – Will Selloff Continue? What’s The Next Bottom?

ShareTweetPin

Search

No Result
View All Result

Recent News

Oil slips further on demand, financial market worries By Reuters

Oil Sinks Further Amid China Concerns, Weakened Economic Prospects By Investing.com

October 25, 2022
Gold Up, Set for Second Weekly Gain as Dollar Falls from 20-Year High By Investing.com

Gold Pressured Near $1,650, Copper Muted on Economic Fears By Investing.com

October 25, 2022
Explainer-What would be the impact of Russian oil sanctions in Europe? By Reuters

Oil prices edge higher as U.S. dollar eases By Reuters

October 25, 2022
Equitieswatch.com

Equitieswatch.com is your Stock Market, Finance, Forex, Cryptocurrency, Business, NFT News Website. We provide you with the latest breaking news and videos straight from the Business industry.

  • Home
  • About us
  • Contact
  • Privacy Policy

© 2022 www.equitieswatch.com

No Result
View All Result
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities

© 2022 www.equitieswatch.com