Why The Latest Correction Is Good For Bitcoin
April 01 2022 - 6:00PM
NEWSBTC
Bitcoin has finally corrected downwards after being on a bull rally
for the better part of this week. This is an expected development
for a digital asset that has grown so much in such a short time.
However, while some in the market lament this downtrend, it is
important to look at what a correction like this might mean for the
digital asset. Because it may do more good than harm in times like
these. Is This Correction Bad? For any upward recovery, there is
bound to be a correction. This can be either good or bad depending
on the circumstances surrounding the market movements. This time
around, bitcoin has begun a recovery trend after making significant
gains earlier this week. Now, for the present market, this looks to
be more of a good thing for the digital asset given where the price
has landed. Related Reading | Bitcoin Mining Difficulty Eyes
New ATH As Block Production Ramps Up Bitcoin had been able to hit
as high as north of $47,000 during its last rally. This had helped
to cement the cryptocurrency’s place in the bull trend. However,
after building up so much momentum, there was bound to be a
drawback and the result of that has been a declining value. These
kinds of corrections during bull rallies are always good. This is
because they allow overbought indicators the change to reset their
values to become good enough once more for investors. Paving the
way for even more money to come into the market in the wake of the
correction. BTC support level at $45K | Source:
TradingView.com Naturally, there remains a support zone that the
digital asset may not fall below, hence it becomes a problem for
the asset. As long as bitcoin is able to hold above $45,000, then
the power still firmly rests in the hands of bulls meaning that the
cryptocurrency is likely to continue in its current bullish path.
If this is the case, then bitcoin may very well see a big bounce
coming. Most likely during the weekend when there is less liquidity
in the market. Bitcoin Needs To Hold In the short term, bitcoin has
no problems registering a bullish trend. The main pain point now
remains to solidify this position over the long term and in order
to do this, the digital asset has to beat the 100-day simple moving
average. It is already trading above this but it remains a small
margin. If the bottom of this correction can stop above $45,600,
then this BTC will revert to a bullish trend over the long term.
Related Reading | Possible Timelines For Bitcoin To Hit $100k:
Why CEOs See Bullish Signs It remains a buyer’s market although how
long this last will be determined by the performance over the next
week. A proper break above $47,000 will once again set the stage
for another massive rally. However, $48,000 will be a hard-fought
battle given low momentum. BTC trading above $45,000 | Source:
BTCUSD on TradingView.com Featured image from FXComfort, chart from
TradingView.com
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