- Bitcoin lost $2,700 in hours: Breaking the 45-day winning streak.
- This correction from the highs could mean a confirmation of an impending rally towards $15,000.
Moments after almost touching $14,000 Bitcoin reversed violent losing at least $2,700 in a matter of hours. The devastating correction comes after Bitcoin has super week after breaking above $9,000, $10,000 and $11,000 key levels.
The battered bears could not take it anymore as they forcefully grabbed the control of Bitcoin’s bandwagon. Bitcoin hit highs around $13,385 before giving in to the selling pressure. The plunge found support around $11,297.25 (intraday low on Coinbase). A shallow correction has already happened from the low with BTC/USD currently exchanging hands around $11,885.
In my opinion, investors should not panic following the retracement which could have been fueled by panic following the hack attack on Singaporean Bitrue exchange where hackers made away with about $4.2 million in both Ripple (XRP) and Cardano (ADA). The exchange has said that the funds were insured and all affected customers will be compensated.
BTC/USD 1-h chart
Therefore, a correction from the highs could mean a confirmation of an impending rally towards $15,000. Besides, the declines have tested the strength of $11,200 level support. Moreover, the shows the price still holding above the 100 Simple Moving Average (SMA) 1-h as well as the month-long ascending trendline.
As long as Bitcoin stays above the trendline and the 100 SMA currently forming a confluence with the Bollinger Band 1-h Lower, capacity for recovery is still enormous. On the contrary, the increasing divergence with the Moving Average Convergence Divergence means that the bulls will have to work extra harder to cement their position above $11,200 and pull BTC back above $12,000.
Bitcoin Key Technical Indicators
MACD 1-h: Increasing divergence south is a key indicator for selling pressure.
100 SMA 1-h: Support above $11,000 is key for upwards correction.
Bollinger Band 1-h Lower: Hints reversal by first offering support and showing high volatility levels.
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige