Why One Fund Manager Says Bitcoin Is On The Verge Of A Larger Bearish Correction

[rakitzogi]

Why One Fund Manager Says Bitcoin Is On The Verge Of A Larger Bearish Correction

Bitcoin has had a good run for the past two months, even surging to almost $20,000 earlier last week. Raoul Pal, the CEO of Real Vision Group has pinpointed several technicals that now suggest that the number one crypto is about to suffer a deeper correction in the near term.

After recently rallying to new all-time highs, bitcoin’s momentum has slowed down over the past few days. Notably, the bitcoin price faced harsh rejection at the $19.5K region once again. The cryptocurrency is trading at $19,170 at press time, gaining 0.27% over the previous 24 hours.

According to Raoul Pal, bitcoin is currently facing “some serious technical headways” that may have the strength to push the cryptocurrency lower. Pal is utilizing the DeMark sequential indicator to predict the price of bitcoin. A reading of 9 on this indicator suggests that a correction is underway, while a 13 reading indicates trend exhaustion.

The fund manager also analyzed bitcoin’s weekly chart, which he believes is topping. Moreover, the crypto’s monthly chart has registered a DeMark reading of 9.

Pal notes that the confluence of these technical patterns across three different timeframes suggests that bitcoin is poised to retrace significantly in the coming days.

In technical terms, the bearish scenario for the flagship cryptocurrency in the coming days hinges on the $18,500 level. If BTC drops below this key support level, analysts expect bitcoin to fall further.

Full time-trader from Amsterdam Stock Exchange and popular crypto analyst Michael van de Poppe, popularly known as Crypto Michael, has observed that bitcoin risks plunging to the $16Ks if it loses $18,500. On the other hand, the cryptocurrency could register a new record high if it manages to obliterate the stubborn resistance at the $19.4K level.

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[Astra]

Well, every specialist in the cryptocurrency market can have their own opinion.  Moreover, as we can see, it is ambiguous.  According to the forecast, if bitcoin overcomes the $ 19,400 mark in the near future, it will be able to grow further, and if it falls below $ 18,500, it may fall to $ 16,000.  There is practically nothing new in this.  We expect bitcoin to continue to rise in price and well above $ 19,400.  Bitcoin has already crossed this bar several times in the last two months alone.  Now prices seem to have stabilized, but this is the calm before the storm.  Bitcoin has given us New Year surprises many times.