BTC Price Plunging Hard—Has Bitcoin Correction Started?
The situation in the past few days was very pessimistic because bitcoin price Stocks plunged nearly 10% as upward pressure mounted. Additionally, bearish clouds continue to hang over BTC price gains since early trading, with prices continuing to fall steadily. This has raised concerns about whether the coin has entered a correction phase. If so, where might the bottom of the correction be as the price prepares for a strong rebound and move towards $100,000?
The value of Bitcoin has increased significantly due to external factors. First, a Chinese court declared Bitcoin and cryptocurrency ownership legal, and Trump plans to appoint a White House cryptocurrency adviser, who is reportedly Cardano founder Charles Hoskinson. At this point, BTC price successfully broke through an important resistance line and hit a high very close to the $100,000 milestone. Although the price reacted well to the new potential reversal zone between $101,000 and $98,700, it failed to reach the magic number of $100,000 as more sell orders were placed right at these levels.
According to the Elliott Wave Theory, Bitcoin has entered five new impulse waves after breaking through important resistance lines. Currently, the price has completed the main correction wave 5, and it seems that the coin has entered a correction wave.
On the other hand, USDT dominance has increased as BTC dominance has declined, which appears to have triggered a pullback. Therefore, in the coming days, Bitcoin is expected to attack the lower line of the ascending channel after approaching the resistance zone between $97,642 and $97,180. However, to complete this wave, the price needs to face rejection and reach the lower support zone below $90,000. Thereafter, purchasing volume is expected to increase, which may increase the volatility of the coin. Therefore, the coin may trigger a good rally and get back to the $100,000 target in a short period of time.
Currently, this shows that they are all shorting Bitcoin, with all liquidity around $100,000. It indicates that market participants are buying and selling at a peak or significant high or low. So now that a lot of the longs have been liquidated, it seems like it’s time to liquidate the shorts. Therefore, Bitcoin price may not have entered a correction phase yet, but has already begun an epic short squeeze.
