The long awaited correction target of thirty percent has been hit but yet again, Bitcoin has shown monumental resilience bouncing back by over $1,800 in a matter of hours. A buying frenzy at four figures resulted in a return to $11k as the correction seemingly came and went in one quick flash.
Bitcoin Bounces Back 19 Percent
Bitcoin has been in a short term downtrend since its high of $13,800 last Thursday. The correction gathered pace over the weekend and into this week with crypto markets tumbling over $80 billion. The 30 percent figure has been bandied about for some time now as there have been eight corrections of similar magnitude during the last uptrend.
From its $13,800 2019 peak, a 30 percent drop would be around $9,600. Bitcoin hit the target during US trading when it fell to $9,620 according to Tradingview. Chart guru Peter Brandt called this correction mild in comparison to previous ones.
“The recent 30.5% correction in BTC is mild compared to the many corrections in the 2015-2017 parabolic advance.”
BTC did not remain at $9.6k for long, there were clearly a lot of buy triggers hit at this level as a four figure buying frenzy created a price surge back above $11k. Over the next few hours Bitcoin surged by 19 percent to top out at $11,440 during Asian trading.
At the moment this high is still lower than the previous at $12,250 so the correction may not be over just yet.
Consolidation on The Cards?
Trader and analyst Josh Rager has been looking at previous patterns and has noted that consolidation could follow the correction.
“We had our 30% pullback so what’s next? History says that price consolidates followed by an average gain of 153% before the next big pullback. There are great rewards for buying pullbacks in a bull market.”
For those in Asia and Europe that have woken up thinking they have missed the dip there is no need to fret. There will be plenty more to come and trend is your friend. The bull market is clearly still intact and there will be further gains for BTC this year.
BTC is still reigning dominant in the crypto world, its market share has increased back above 62 percent and most of the altcoins are still asleep. The move has added almost $20 billion back into total market capitalization which is currently just over $320 billion.
At the time of writing bitcoin was trading just north of $11,300, up 9 percent since the same time yesterday. The next few hours will be critical in determining the direction BTC will take now.