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Why a 30% Bitcoin price crash should not catch you off-guard right now

Why a 30% Bitcoin price crash should not catch you off-guard right now

The Bitcoin (BTC) value rally halted the second Joe Biden was introduced because the projected winner of the 2020 presidential election in the course of the weekend with value dropping from $15,500 to $14,400.

Nonetheless, Bitcoin continues to be constantly displaying power because it’s as soon as once more going through the ultimate resistance zone at $16,000.

This last resistance zone is the final main hurdle earlier than a possible run at a brand new all-time excessive. Nonetheless, a pullback is turning into more and more possible with the Concern & Greed Index at the moment on the similar ranges just like the height excessive in the summertime of 2019.

The weekly stage at $16Ok possible massive resistance

BTC/USD 1-week chart. Supply: TradingView

The Bitcoin’s weekly chart reveals the resistance zone at $16,000 as the ultimate resistance zone earlier than a brand new all-time excessive may be examined.

The weekly chart additionally reveals assist ranges if the value of Bitcoin begins to appropriate. A correction could be comparatively wholesome is it flips earlier resistance ranges to turn out to be new assist.

If a correction happens, the weekly stage of round $11,600-12,000 needs to be watched as a possible assist zone. Such a correction would imply a dropdown of roughly 30% for Bitcoin’s value. A correction of 30% is kind of regular as this occurred just a few occasions in the course of the earlier bull cycle in 2017.

‘Excessive greed’ just like summer season 2019

The Crypto Concern & Greed Index is a helpful indicator to measure the present market sentiment. In extraordinarily depressed intervals, the index makes use of the colour pink to mark the general sentiment.