Is Bitcoin Price Headed For A Correction Or A Breakout From $28,000?

Christian Encila

2 years ago

3 mins read

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The volatility of Bitcoin price has always been a hot topic in crypto, as BTC fluctuates rapidly because of various factors such as regulatory changes and market sentiments. As Bitcoin continues to gain mainstream adoption, the anticipation for its next move is at an all-time high.

Bitcoin enthusiasts and investors alike are eagerly anticipating the next move of the world’s most popular cryptocurrency, as it stands at a critical crossroad.

While the long-term outlook for Bitcoin’s price remains bullish, the short-term trend is yet to be determined, leaving many wondering if the digital asset will manage to surpass its major obstacle of the $30,000 resistance level.

Will It Be A Correction Or Breakout?

As the market holds its breath, all eyes are on the demand and buying power, the ultimate determinants of Bitcoin’s fate. Will the buyers come in strong and push Bitcoin past its hurdle, or will the cryptocurrency market witness a correction?

In the context of cryptocurrency, a correction refers to a temporary price decline in the value of a particular cryptocurrency or the entire cryptocurrency market, following a period of rapid growth.

Corrections are a natural part of market cycles, and they can be triggered by a variety of factors, such as market sentiment, news events, or changes in regulation.

During a correction, cryptocurrency prices may drop significantly, leading to a market downturn and a decrease in overall trading volume. However, corrections are often seen as healthy for the market, as they help to remove excess speculation and stabilize prices over the long term.

Bitcoin Price Inches Upward

Now, Bitcoin’s latest price update reveals a modest 0.98% rally in the last 24 hours, pushing the cryptocurrency’s value to $28,323, according to CoinMarketCap.

Despite the seemingly slow progress, Bitcoin has also managed to maintain a steady 2.30% climb over the past seven days, hinting at the potential for a more significant surge in the near future.

Source: CoinMarketCap

Meanwhile, Bitcoin’s 4-hour timeframe chart reveals an ascending trendline that has been in place for several months and is presently propping up the price.

The cryptocurrency’s current predicament, however, is that it appears stuck between the ascending trendline, which began at the $28,000 range, and the $30,000 price region.

The significance of this crucial range cannot be overstated, as a substantial move above or below it will likely eliminate any lingering uncertainty and determine Bitcoin’s mid-term outlook.

It’s a subtle yet encouraging sign for Bitcoin holders and traders, who are always on the lookout for any movement in the volatile crypto market.

Weekly Analysis Predicts Bullish Movement For BTC

Bitcoin’s daily technical analysis does not offer much insight into the cryptocurrency’s trend direction, but the weekly outlook paints a decisively bullish picture.

This optimistic forecast is supported by several factors, including the weekly time frame, which suggests that Bitcoin’s price is set to climb toward its long-term resistance at $31,500.

Bitcoin (BTC) total market cap currently at $547 billion on the daily chart at TradingView.com

Meanwhile, it’s essential to note that this bullish forecast could be invalidated if Bitcoin experiences a weekly close below $24,600.

If that happens, the cryptocurrency’s price could fall back toward the $20,000 mark. As always, the crypto market is volatile and unpredictable, and traders and investors should proceed with caution.

-Featured image from CoinPedia

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.