Bitcoin (BTC) has grown well in recent weeks, but there has been a major correction in the last 24 hours. The BTC price fell by more than $ 10,000 from $ 58,000 to $ 48,000, which is a correction of almost 20%.
This decline, as many expected when 28,000 BTC was deposited on Gemini, also caused a sharp drop in other cryptocurrencies in addition to Bitcoin, which increased Bitcoin’s dominance in the market.
But will history repeat itself and produce a tedious corrective march? Let’s analyze the graphs.
Bearish divergence indicates a further downward trend in the future.
Markets never move in a straight line, and adjustments must be made from time to time. This can be seen as a “reset” of the market when it returns to the center line of the trend and the euphoria disappears.
In the first phase of correction, people still expect corrective movement to be a small correction, while the mood begins to change slowly. The moment the correction continues, the lower the price, the worse the feeling.
At the bottom, Bitcoin will be marked “dead” and the Ponzi chart will reappear, after which the price has historically recovered.
However, the important question now is whether the market will witness a long-term correction, or whether the price of bitcoin will stabilize over the green square shown in the table above. This green rectangle is the preprint period, which technically should be the mainstay.
If the site has between $ 42,000 and $ 44,000, the trend is likely to continue. In this case, $ 63,000 interest is still on the table.
However, bearish deviations and weakness earlier this week indicate further decline. As a result, a loss of space between $ 42,000 and $ 44,000 could result in a further correction of around $ 37,000.
Historically, March has not been a bull month
The weekly table Bitcoin shows some good historical data which shows that March is generally a correction or consolidation period. During this period, there were major corrections in 2017, 2018 and 2020, and price movements in the page were observed in 2016 and 2019.
Of course, history cannot be guaranteed to repeat itself, but historical rhymes and historical data often provide insight into how market cycles worked.
In this context, an important indicator is to look at the 21-week moving average (MA), which will prevent the bitcoin price from falling further. From this point of view, the current price level of the 21-week moving average is 28,000 dollars, and in the coming weeks it will fall to 32,000 dollars – 34,000 dollars.
Consequently, the recent high is set at $ 30,000, which means that further decline to $ 38,000-40,000 is unlikely, as it will be a regular 30% to 40% correction.
Bitcoin-critical levels to watch out for
The Bitcoin day chart shows some critical levels that should be monitored for the current period. First and foremost, the recent downturn has pushed the Bitcoin price up to an important level of support. You should keep this range between $ 42,000 and $ 44,000 to avoid further inconveniences.
If it does not, it is likely to fall further to around $ 37,000. This will also give you the opportunity to take the MA exam again for 21 weeks.
However, if a green zone between $ 42,000 and $ 44,000 provides support, it will, as previously mentioned, probably rise to around $ 63,000.
However, it is historically too early to say that the end of February and March is a correction period rather than a period of growth for the markets in general.