Bitcoin (BTC) correction picks up speed

Bitcoin (BTC) correction picks up speed

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Bitcoin is down as much as 6% on Tuesday already. The rest of the crypto market is fairing a lot worse. How far can this correction go? Is the bull market over?

With more than $640 million worth of $BTC being sold out of the Grayscale Bitcoin ETF (GBTC) on Monday, making it a record outflow day for this ETF, even the Blackrock Bitcoin ETF (IBIT) was not able to match it, in spite of a daily inflow of $451 million. Therefore, the day was overall negative for the $BTC flows for the first time for weeks, with a -$154 outflow the result for the day.

This damper on the price succeeded in speeding up the current $BTC correction, with the king of the cryptocurrencies currently over 6% down on Tuesday, which makes the overall pullback from the new top just short of 15%.

Support reached - will it hold?

Source: Coingecko/Trading View

The $BTC price is right now holding a support, albeit not the strongest one. The price is inside of a descending wedge, which is a bullish pattern. If the bottom trend line does hold, a bounce to the top and even a breakout to the upside from this pattern could be likely.

Lower levels could be reached

Source: Coingecko/Trading View

Zooming out to the weekly time frame, it can be seen that the $BTC price has dipped below the support that coincides with the first bull market top in 2021, and then the double top. As stated earlier, there is support at the current level, but if this fails, a descent to $60,000, or even as far as $51,900, could be on the cards. Where the candle body closes next Sunday will be extremely critical.

Governments continue to block retail access to trading

As usual, it does need to be recognised that this is all noise in the grand scheme of things. Fiat currency continues to be debased as governments frantically try to keep the financial system above water. This has the effect of making the poor poorer, and the rich are able to weather the storm because they have assets.

To make matters worse, some governments are persistently cutting off their citizens from being able to purchase bitcoin on centralised exchanges. This is why decentralised exchanges (DEXes) are so important. 

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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