Dec 29, · It means that Bitcoin's correction is imminent; however, the price may attempt another rally before the sell-off starts for real. BTC tries to break from a . Nov 26, · The Bitcoin price reached a new year high of $19, and was close to its former all-time high of over $20, Within a few hours, however, Bitcoin showed a strong correction, with the price falling briefly to $17, At the time of writing, BTC was able to stabilize at $17, The market capitalization has fallen to $ billion. Jan 02, · Mark Newton, a crypto analyst, says that early January will bring about a bitcoin correction that may bring its good fortune to a halt.
What is a bitcoin price correctionBitcoin price crash: Possible reasons for correction of more than $1,
He also stated that bitcoin has a strong history of slinking back somewhat whenever it experiences a solid fourth quarter, which it certainly did in He mentions:. All those years where we had a stellar Q4 we reversed course in trend back in late December, early January, and actually went lower.
Ki Young Ju, founder of the on-chain analysis service CryptoQuant, said on Twitter that more and more whales are sending BTCs to exchanges, but that the long-term on-chain indicators remain bullish:.
All Exchanges Inflow Mean increased a few hours ago. But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days. The crash may also have been influenced by tighter regulation of self-hosted crypto-wallets by US Treasury Secretary Steven Mnuchin.
Coinbase CEO Brian Armstrong stated that if the new regulations announced yesterday come into force, this could be a major setback for Bitcoin and the crypto market:. If this crypto regulation comes out, it would be a terrible legacy and have long standing negative impacts for the U. In the early days of the internet there were people who called for it to be regulated like the phone companies.
Meanwhile, data analysis firm Santiment describes that Bitcoin is still drawing bullish indicators, but there are some metrics that point to a short-term correction. The Bitmex fundig rate is currently still positive, which means that there are more long positions on the derivatives exchange than short positions. In the past, however, it is precisely in such situations that strong corrections have occurred, with all long positions being liquidated by a sell-off.
Santiment states that BTC can continue to grow, but traders should be vigilant:. In addition, activity on social networks has risen to a local high, which also indicates an overheated market. As soon as the majority of investors become nervous, the peak could be reached and a corresponding correction could follow:. Despite some indicators pointing to a correction, it remains to be seen whether Bitcoin will continue to fall or continue the upward trend of the last weeks, Santiment said.