Bitcoin Price Plunges – Where Next?
The Bitcoin (BTC) price has plunged more than 10% in the last 24 hours, with it momentarily slipping below $10,000 before recovering.
At time of writing, the Bitcoin (BTC) price is $10,247.31, and it’s the heaviest correction since the March crash that saw Bitcoin drop over 50%.
But where is Bitcoin heading next? Are we in for a further drop, or is this the correction we need to march on to a new all time high?
What Next For Bitcoin (BTC)?
Bitcoin slipped under $10,000 for the first time since July 27 before quickly recovering, but we’re still down over 10% in the last 24 hours.
The fall liquidated $175 million worth of long positions on BitMEX in the last 12 hours, as investors ponder where next for the Bitcoin price..
The next important level traders are currently eyeing is the $9,600, where BTC struggled to break past during early summer before breaking through it in late July.
Bitcoin Price Short-Term
The correction is heavy, but some say overdue. However, analysts are indecisive with the short-term outlook for BTC.
The Bitcoin price briefly dropped under $10,000, which was met by fierce bulls, but it remains to be seen if the bulls can push the price back up towards $11,000.
If there isn’t enough bullish momentum we could see a challenge to stay above $10,000. And if the bears keep the momentum, the next major realistic support would be around $9,600.
At $9,600 support we would see some major bullish longs according to Bitazu Capital Fund Manager, Mohit Sorout.
$9,600 is a major support level and it was first pointed out by popular analyst, Willy Woo, who said last week:
‘I’m hoping for and wanting sub $10k as that fills the CME gap and a confluence retest of the long term resistance trend-line as support [at $9,600]. That will be a solid foundation to build from. Shakes off the remaining bear cases.’
Woo is expecting a 2-3 week pull back inside a larger bullish structure, which will likely lead to a run up to test the all-time high.
Bitcoin Price Long Term
Bitcoin’s long-term outlook remains bullish, and a heavy correction is probably overdue.
‘Bitcoin looks like on the chart pattern that it’s about to outperform everything,’ said Pal. ‘It’s broken enormous chart patterns in its own right, we’ve had the regulatory change to its advantage, the macro has turned completely to its advantage, and I don’t see many scenarios where Bitcoin doesn’t do extremely well.’
Senior commodity analyst at Bloomberg Intelligence, Mike McGlone backs up Pal’s bullish sentiment, saying he’s confident Bitcoin will mirror the previous cycle and that an all-time high is still on the cards for this year.
‘Bitcoin is mirroring the 2016 return to its previous peak,’ said McGlone. ‘That was the last time supply was halved, and the third year after a significant peak. … Fast forward four years and the second year after the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year if it follows 2016’s trend.’
Bitcoin Price Corrections Are A Necessity
What goes up must come down, and after extended bullish periods, a heavy correction is better for the whole market going forward.
We’re likely in the early phase of a 12-18 month bull cycle, and these corrections are there to test support, and will repeat every now and then.
These will be tested, and will also drive the Bitcoin price higher. Will we see an all-time high this year? Possibly, but I believe we’re looking at April 2021 at the very latest.
Author: Pablo Clarke