Bitcoin price correction begins

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Bitcoin price correction begins — Here’s how low BTC can go

The price of Bitcoin may be due for a deeper correction as the upward momentum is showing weakness.

The price of Bitcoin (BTC) has been seeing a massive run in recent months as it surged by almost 100% from $10,000 to $19,800. However, the all-time high region at $20,000 has been showing significant resistance, causing the price to drop several times including today, as BTC has now fallen below $19,000 on Dec. 4.

The chances of a correction have been slowly increasing amid diminishing volume in recent days. Multiple arguments can be made for a deeper correction, which wouldn’t necessarily be bad for the market in general.

Given that Bitcoin’s price reached the all-time high in a nearly vertical manner, a clear-cut breakout above the all-time high doesn’t seem likely to occur at this point.

However, as long as Bitcoin’s price remains in this region, several arguments can be made for a potential correction.

Specifically, the volume is dropping severely on the recent attempt to break $20,000 indicating a potential weakening of momentum. Second, the current all-time high tests open the door for a possible bearish divergence on the daily timeframe.

This bearish divergence isn’t confirmed yet, but it shows some potential signals of a slight trend reversal. In case of a correction, the key areas to watch for support are $16,000 and $14,000.

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