Bitcoin’s latest correction may get a bit steeper as it sits below a massive supply barrier and on top of weak support.
Bitcoin Primed For Significant Losses
The pioneer cryptocurrency has delighted in an impressive bull rally over the previous couple of months. Since early September 2020, Bitcoin saw its market value skyrocket by nearly 330%.
BTC’s cost went from trading at a low of $9,800 to make a new all-time high of $42,125.
Considered that such a bull did not experience any significant corrections, numerous on-chain metrics recommended that Bitcoin was hovering in overbought territory.
The cynical scenario appears to have been validated recently after a spike in offering pressure sent out rates below an important support barrier. Indeed, BTC appears to have actually broken listed below the lower trendline of an in proportion triangle that had been establishing since the peak on Jan. 8.
As Bitcoin sliced through the $33,800 difficulty, the SuperTrend indication flashed a “& ldquo; brief & rdquo; signal including credence to the bearish outlook.