When Will Bitcoin's Real Correction Begin?
This question is on the minds of many traders following the recent rally in the cryptocurrency.
Typically in markets:
1.
A correction occurs after a rapid upward movement without rest or price consolidation. Over the past few weeks, Bitcoin has surged quickly, so a correction is a natural event.
2.
A real correction usually amounts to:
10% to 20% from the recent peak.
If the peak was $122,000, a 10% correction would bring the price down to around $110,000, while a 20% correction would mean a drop to approximately $97,600.
Has the correction already started?
The drop from $122k to $119k is only about 2.5%, which is still considered normal price movement within an uptrend.
There has not yet been a clear break of major support levels (such as $115k or $110k) to confirm the start of a deeper correction.
Signs that a correction may be approaching or starting:
The price falls below $115,000 with high trading volume.
Reversal candlesticks appear on the daily chart (such as a bearish engulfing pattern).
Negative market news or large investors (whales) begin selling significant amounts.
📉 $BTC
I expect a deeper correction could take place between late July and early August, especially if the price fails to retest the $122k level.
However, if the price stabilizes between $118k and $122k for a while, this could signal an attempt to build a price base before another upward breakout.