Talk of bitcoin taking one of its typical 30% dips is going the rounds. However, no more than 10% pullbacks is the reality in the current environment of waiting for a Spot Bitcoin ETF announcement.
Typical bitcoin corrections
Bull markets over bitcoin’s short history have always been punctuated by deep corrections of around 30% or so on average. In 2021 the price of $BTC even fell 55% before rising again to its double top before the end of the year.
Source: Trading View
Therefore, it’s really not unusual to see these dips after some months of upward price action. So far in this bull market, $BTC has undergone three dips to the tune of around 20% each time.
The current hiatus for the runaway train that is bitcoin has only reached as far as 10.7%, and it appears that $BTC is really not interested in dipping too much further, as every time the price starts dropping it is quickly bought up by those wishing to take advantage of what they perceive as the positive price action to come, once the first Spot Bitcoin ETFs are announced, and that potentially in the next two weeks.
$BTC continues in a range
Source: Trading View
Zooming into the price action since early in December, several support and resistance levels can be seen, within which $BTC is ranging sideways. The top of the range is at $44,250, while the bottom can be found at $40,550.
The question that could be asked here is whether $BTC will continue within this range for the next two weeks? This will probably be decided by the amount of $BTC that bulls buy during this consolidation period. It might be that as the potential date of 10 January gets nearer, the buying might become more intense, and $BTC leaves this range and continues toward a possible target of $48,000 to $50,000.
Bitcoin bounce
Source: Trading View
Zooming in slightly further shows that $BTC bounced nicely from the 0.618 fibonacci level, and now the price is heading higher. Given that institutions are in the Christmas holiday period it will remain to be seen whether enough volume can come in to break the yearly high at around $45,000. Whatever happens, the next couple of weeks are going to be highly anticipated.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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