Markets
Is Bitcoin Out of Its Correction Phase? Here’s What You Need to Know Before You Jump In
Bitcoin Price The cryptocurrency market is breathing a sigh of relief as the bulls seem to have regained their dominance. In addition, a few positive stories are also fueling the optimism around the tokens, which had turned into fear over the past weekend. In the meantime, new rounds of transfers of around 3,100 BTC from the German government-linked address to Kraken and BitStamp have emerged.
This was expected to create a new wave of fear in the markets, but Bitcoin managed to absorb all the selling with force, as demand for the token increased significantly. Moreover, whales also seem to have taken advantage of the opportunity to accumulate at a lower price, as the BTC Spot ETF the volume again exceeded 294 million.
It is therefore assumed that the BTC price has completed its correction and therefore could start testing the upper targets, recovering the lost levels in the coming days. However, the current trading setup shows a low probability of going through a correction phase.
From a broader perspective, BTC price has broken below the crucial support zone, which is believed to have rekindled the bullish strength. However, the technicals do not support the bullish narrative as a whole. Mainly because the RSI is cemented at the low, showing minor bounces, while the OBV is still sticking to the support, validating the continuation of the downtrend. Therefore, if BTC price fails to break into the support-turned-resistance zone between $57,412 and $58,381 before the CPI rates release, a fresh downtrend could drag the levels below $53,000.
Despite the bearish clouds hanging over the crypto, BTC price remains bullish in the short term. This means that the price that started the day on a cloud of bullish notes remains bullish till the end of the day and may even surpass $58,000, which could attract more bearish attention. However, the upcoming weekend could have an impact on the token as a rise above $58,500 could invalidate the bearish thesis while a fall below $54,800 could revoke the bearish activities.
Also see: The Best Cryptocurrencies to Buy Right Now as the Market Crash Comes to an End