Bitcoin Price Slides $500 Overnight, But Is A Steeper Selloff Brewing?

Tony "The Bull" Severino

Last Updated: June 11, 2024 2:09 pm

3 mins read

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Bitcoin price is now trading under $19,000, after repeated failure to sustain above its former all-time high and flip the former record from resistance to support. Since then, the leading cryptocurrency by market cap has fallen $500, but it could be the beginning of a short bearish phase to reset market sentiment, indicators, and more, before moving higher toward new highs once again.

Bitcoin Loses $19,000: Is This The Start Of A Chaotic Correction?

Bitcoin price closed its daily candle last night above $19,150, and this morning the price per BTC dove to as low as $18,650. Support at that level has held thus far, but with the bullish momentum starting to fade, the first-ever cryptocurrency has begun to look a little heavy.

Bitcoin price dropped $500 in the early overnight hours, but more downside is possible | Source: BTCUSD on TradingView.com

The seemingly unstoppable cryptocurrency is still far ahead of nearly every other mainstream financial asset in terms of 2020 returns, even with the $500 per BTC pullback. And even if the momentum does turn downward, any downside is likely to be short-lived, bought up with fury, and the cryptocurrency will be right back chugging along in its bull market in no time.

But not even Bitcoin can go up in a straight line, and although it has for several weeks now, when momentum turns it isn’t easy to stop – as the asset has shown toward the upside recently.

Bitcoin corrections can get deadly fast, is this time really different? | Source: BTCUSD on TradingView.com

Crypto investors shouldn’t forget, that although Bitcoin is as bullish as it gets right now, it is still the same cryptocurrency that crashed from $20,000 to $6,000 in two months, then from $10,000 to under $4,000 in less than a month in 2020.

The fact that the market isn’t considering this factor, could be its undoing, as traders step in to long the “dip” and create an environment for a “long squeeze” downward.

Bitcoin very well could correct extremely hard, yet still rise after to the predictions analysts are making for next year, ranging from $100,000 BTC to $400,000 BTC.

The message here is don’t rule out anything and considering how volatile Bitcoin can get, and be ready for all potential outcomes. It also is wise at this point not to trade the cryptocurrency, or risking learning the true value of the phase “HODL.”

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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