Bitcoin Goes through 10% Correction

bitcoin

The Price of Bitcoin has fallen more than 15% in the last 24 hours. At its peak today it was trading for around $19,500, however, it went down to almost $16.300 at some point today. At the moment of writing this article, it’s trading for $16,650, meaning it has gone up a little since the daily low point.

This downfall comes after a month of BTC price frenzy, during which the price of 1 BTC went from $13k to almost its all-time high price of $19,783. After an almost 50% rise in just 1 month, this 1-day drop seems like a healthy correction.

Here is what Naeem Aslam, chief market analyst at AvaTrade wrote about the price of BTC going down: “Worry not, this is a healthy correction. An asset is typically viewed as in correction when it drops by at least 10% from its most recent peak. Technical indicators have been long indicating that a correction is coming and now the price is retracing towards its 50-day simple moving average on the daily time frame. The pace of the current sell-off is good news for Bitcoin because it has pushed the RSI [relative strength indicator] in oversold zone on the 4-hour time frame which hasn’t happened since September,”.

BTC technicals are still strong and we still believe Bitcoin can be great for investors in the long run. Recently One of Citibank’s analysts forecasted that the price of BTC might be reaching $300k by next December and Billionaire Stanley Druckenmiller while talking to CNBC mentioned that besides gold he owns BTC as well. You can look at this price correction as a 15% discount and the possibility to get cheaper. Maybe Bitcoin decided to have a black Friday discount for investors as well?!

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