Bitcoin Price Analysis: Understanding the BTC-USD Price Correction

Btchain

Note: This analysis does not attempt to speculate on the market implications of news events. This is a pure analysis of the market data.

The unprecedented rise in the BTC-USD market to near $3,000 even caught many of the more bullish traders by surprise. However, this quick rise in value did not come cheaply: once BTC finally ran out of steam, the market correction not only affected BTC-USD prices, but it was felt throughout the entire crypto-space as entire market cap took a massive plunge from $49B to $36B over the course of three days.BTC Market Cap 1.png

Figure 1: Market Cap Pre–Bitcoin Price Correction

BTC Market Cap 2.png

Figure 2: Market Cap Post–Bitcoin Price Correction

Why Did This Massive Price Correction Happen and Where Are We Heading?

There are two ways of viewing the BTC-USD run to near $3,000 levels:

  1. The top can be viewed as the absolute top of the market ($2,948)

  2. The top can viewed as the peak at $2,726.50 with a healthy 127 percent Fibonacci Extension

I’m going to analyze the market from the view of option 2 because I feel this provides a more sober outlook on the direction of the BTC-USD market.


Read more ... source: Bitcoin Magazine

Advertise on the Bitcoin News

Bitcoin Watch Shop