- An analyst noted, ‘In 2016 and 2019, after finding the market bottom, Bitcoin’s first major correction occurred after reaching the 0.786 Fibonacci retracement level.’
- In today’s trading session, Bitcoin dropped below $42,000 and later recovered. Moreover, it lost over 3% of its value after reaching $44,000 in the last seven days.
- Despite recent strong declines, Bitcoin managed to secure over 11% one-month returns by surpassing $44,705.32 during this period.
Bitcoin Price Drops After the Expiry of Options on December 29: When will the correction come?
Will Bitcoin Price Rise Before a Correction?
Bitcoin (BTC), the world’s largest and oldest cryptocurrency, dropped below $42,000 today. The reason for this decline could be attributed to the expiry of over $10 million in BTC options on Friday, December 29, 2023. However, according to a recent post by a prominent crypto analyst on platform X, it is likely that Bitcoin’s price will experience a 40% correction before reaching $50,000.
While the aforementioned prediction may appear bullish in the short term, a significant correction is expected afterward. Contemplating a peak of $50,000 could lead to a price drop of around 40%, bringing the price down to approximately $30,000. The analyst made this prediction considering Bitcoin’s historical retracements.
The analyst stated, ‘In 2016 and 2019, after finding the market bottom, Bitcoin’s first major correction occurred after reaching the 0.786 Fibonacci retracement level.’ The analyst identified similarities between historical trends and the current chart pattern. Therefore, if history repeats itself, BTC may rise to $50,000 without undergoing a significant correction.
Both bulls and bears can benefit from this opportunity. Bulls may choose to hold BTC, anticipating the expected bull run and the possibility of reaching $50,000. On the other hand, bears may rejoice if the price drops to $30,000, as suggested by the analyst. Additionally, a correction to $30,000 may provide a better entry point for investors seeking a more favorable BTC price. However, if the value of BTC drops this much, it could lead to the liquidation of overleveraged long positions.
Bitcoin Price Decline Continues
In today’s trading session, Bitcoin dropped below $42,000 and later recovered. Moreover, it lost over 3% of its value after reaching $44,000 in the last seven days. As of now, the BTC price is trading at $41,836 on Saturday, December 30, 2023, marking a 1.34% decrease. Additionally, its market cap decreased by 1.33%, reaching $824.92 billion.
However, the 24-hour trading volume increased by 3.79%, recorded at $23.68 billion. Despite recent strong declines, Bitcoin managed to secure over 11% one-month returns by surpassing $44,705.32 during this period.
