How far could the Bitcoin price continue to correct?


Between yesterday and today, there was a sudden collapse in Bitcoin price followed by a real bounce.

After hitting an all-time high of almost $ 42,000 On January 8, the price lateralized for approximately two days around the $ 40,000 mark.

However, yesterday it started to fall, first below $ 36,000, then below $ 34,000, and finally below $ 33,000 as well.

Definitely, since the highs of three days ago, it has lost more than 20%.

However, this drop was followed by a modest rebound, which momentarily brought it back to more than $ 36,000 for hours later to fall back below $ 33,000. However, it is not certain that the decline has stopped, because the faltering rally could be followed by another decline.

According to Santiment On twitter, the rebound could continue in a big way, along with that of the prices of many altcoins, so the expected drop to the downside appears to have been avoided for now.

By the way, the price and trading volume chart shown by Santiment reveals that the volumes during this collapse were similar to when the price reached new all-time highs of $ 42,000 on January 8, and this shows clear and continued interest in this asset even after it left all-time highs.

It's worth noting that a month ago the price was still below $ 20,000, so even after today's crash, it was still 80% higher than thirty days ago.

Looking back on the last three months, the price has grown by more than 200%, so today's drop is of little consequence to holders who bought BTC in recent months with the intention of holding it long-term.

Bitcoin, a rebound already observed

Such large and sudden moves are actually the norm, rather than the exception, for a still highly volatile asset like bitcoin, and only surprise less experienced investors or traders.

Also, the trend in late 2020 / early 2021 is somehow similar to that observed in late 2016 / early 2017, when a bull run allowed the price to return to the all-time highs of the time, only to retreat 30% and begin to rise again.

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