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After a heavy crash on Thursday bitcoin bulls are still struggling to stop the king of the cryptocurrencies from falling further. Is this it, or is there more to go?
A precipitous drop
A palpable nervousness had beset the crypto market over the previous week. All eyes were on bitcoin as it continued to traverse down in its bull flag. Given the pattern, many were expecting the apex crypto to finally break out to the upside and confirm the bull market.
However, bears had other ideas.
Things really started getting serious on Thursday evening as bitcoin suddenly painted an hourly red candle to the downside, of a whopping 9.6%.
This reached the $25,000 price level where bulls were waiting in numbers to buy the asset back up. A wick back to $26,250 resulted - all in the space of the same hourly candle.
A healthy correction
Around 12 hours later and bitcoin is moving sideways, with the market waiting for the next direction to become apparent. Bitcoin is currently at a reasonable area of support at $26,500, which is just above the 0.786 Fibonacci level. The next very strong support below is at $24,250.
The upwards trendline has been broken and so has the 200-day moving average, both incredibly important supports if bitcoin is to maintain its bull momentum. However, the weekly candle does not close for another couple of days or so, giving bulls a chance to at least potentially regain the 200-day MA at $27,250.
Looking at the chart, it does look like bitcoin just came to the bottom of a range it entered back in March of this year, with the bottom of the range at $25,000 and the top at $31,000.
So far, this looks like a healthy correction, given the incredible thrust upwards since the beginning of this year. Even if bitcoin were to go lower, $25,000 is a huge platform to sustain the price.
Bull market still intact
Some investors may have been cursing their luck at missing the giant step up out of the bear market. This correction, or even if bitcoin were to go back down to $25,000, would be great areas to start building a position.
If investors are still nervous, they only need to look at the other available asset options, all of which are tied into the monetary system. Even gold and silver are manipulated by the paper futures market.
Bitcoin may have corrected, but there is certainly no reason for panic. Phase 1 of the bull market is still very much intact, and phase 2 can potentially begin next year when bitcoin gets above the $31,000 level.
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.