Many even analyzed the current situation and claimed that the largest cryptocurrency was also due for a major pullback of up to 40 percent after peaking at $13,800. The recent indicators also pointed towards a potential “sell-off” phase for Bitcoin for the first time since December 17, 2018.
Consistent Correction over the long term?
Chart analysis helps determine a lot of possibilities that could transpire in the market and according to a recent analysis by Peter Brandt, notable trader, it was indicated that major corrections could take place but it would be spread out over a timeline of 7 months. The situation could see Bitcoin drop down to a valuation of around $5000 and then another parabolic phase could surface which would trigger a massive pump again.
However, Brandt also claimed that corrections could happen over the short period as well, where the devaluation would be minimal and it would not breach the $9200 resistance. The chart also indicated the possible formation of an inverted head and shoulder pattern if the resistance neckline of $12,064 is breached in the coming weeks.
Recently, Tone Vays, cryptoanalyst, also opined on the matter and stated that the resistance zone of $12,200 to $12,500 would be absolutely crucial for Bitcoin to surpass if the trending sentiment has to revert to being bullish.