BitcoinShort
How low could BTC drop?
Bitcoin prices have dropped sharply over the past three days, making it a tough period for crypto and altcoin holders. At one point, ETH was down 24% from its December 16 high, while Litecoin saw a full 41% drop from its peak.
These sharp declines may encourage some buyers to take advantage of the massive pullback in altcoins, but watching Bitcoin's movements is crucial. When BTC finds a low, the chances of a low in altcoins will be greater.
So, from which level could BTC bottom out?
Since November 12, Bitcoin has been moving within a bullish channel, steadily pushing higher as latecomers joined the rally. However, it has now breached the channel, as the chart shows. And as long as Bitcoin trades below today's high of 98,253, this trendline break remains valid, suggesting the potential for further downside.
So, how low could prices go? A 21% correction from the all-time high is reasonable in a typical bull trend. This would bring Bitcoin's price down to approximately 85,000. If that happens, many latecomers who bought since November 12 would likely be stopped out, potentially allowing the price to stabilize and resume its upward trajectory from that level.
A stronger support level exists at the March and October highs of 74,000. Hopefully, the market won't test this level, which marked the start of the latest rally after the US election.
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
These sharp declines may encourage some buyers to take advantage of the massive pullback in altcoins, but watching Bitcoin's movements is crucial. When BTC finds a low, the chances of a low in altcoins will be greater.
So, from which level could BTC bottom out?
Since November 12, Bitcoin has been moving within a bullish channel, steadily pushing higher as latecomers joined the rally. However, it has now breached the channel, as the chart shows. And as long as Bitcoin trades below today's high of 98,253, this trendline break remains valid, suggesting the potential for further downside.
So, how low could prices go? A 21% correction from the all-time high is reasonable in a typical bull trend. This would bring Bitcoin's price down to approximately 85,000. If that happens, many latecomers who bought since November 12 would likely be stopped out, potentially allowing the price to stabilize and resume its upward trajectory from that level.
A stronger support level exists at the March and October highs of 74,000. Hopefully, the market won't test this level, which marked the start of the latest rally after the US election.
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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