Crypto Analyst: Last Leg Down for Bitcoin Correction Coming This Week

Avatar Tony Spilotro 3 months ago

Bitcoin price has been consolidating for what feels like ages now. After Bitcoin’s parabolic run-up, the leading crypto asset by market cap was rejected at $13,800 – just before it could break through the final bear market resistance.

And while Bitcoin is most definitely laying the foundation for its next big bull run, one crypto analyst expects the final leg down of Bitcoin’s short-term correction to come this week, and finally leave the current trading range that Bitcoin has been trapped in now for over two months.

Crypto Analyst Expects Move to $7-8K Range This Week

Asset prices cannot go up in a straight line, and while Bitcoin often likes to challenge that theory, the times it does go parabolic typically leads to a correction.

Related Reading | Bitcoin Price Could Test Bottom of Weekly Range, MACD Turning Bear

This latest rally Bitcoin has been on since the start of April also went parabolic, yet not to the same degree as the rally to the previous all-time high of $20,000. But still, parabolic rallies tend to correct and correct hard.

Thus far, Bitcoin has corrected over 30% – a common figure during the last bull run, but most expect Bitcoin to correct further before it resumes on its way to retesting highs and setting new ones.

One crypto analyst expects more correction ahead and believes that the “last leg down” is coming this week. 

After Correction, Bull Run Resumes, BTC Breaks Above $14K

The same crypto analyst has downside targets of between $7,500 to $9,000, which would fall in line with what most other analysts believe is a high area of interest where a lot of buyers are waiting to snag up cheaper Bitcoin in a haste.

Also, in that trading range, is a CME Futures gap that’s been oft-cited as a place that Bitcoin price might return to “fill” the gap.

Related Reading | Bears in Charge as Bitcoin Price at Risk of November 2018 Style Dump 

In financial markets,”filling the gap” is a process in which an asset returns to previous price levels where a void in a chart has formed, due to the price of the asset rapid growing or falling while trading sessions are offline. When trading resumes, the price of the asset is far lower or higher than it was at close, leaving an unfilled gap.

CME Futures trading closes on Fridays, often leaving gaps when Bitcoin price rises or drops significantly over the weekend.

As for upside targets, CME Futures gaps may also provide a hint as to where we’ll go after the lower gap is filled. Two gaps at $18,500, and $17,700 exist, and the proximity to Bitcoin’s previous all-time high, could suggest that these gaps will be the last stop for Bitcoin price before it retests $20,000 and sets a new record for the crypto asset.

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