Bitcoin has been on the rise since it fell below $30,000 almost 2 weeks back. And it saw this continuous price increase without any downside during this period. But now Bitcoin’s 10 day green streak has finally come to an end as its price has fallen below $40,000. The price of Bitcoin did cross $42k but was unable to hold above the level. Even altcoins followed suit and retreated quite heavily. Ethereum reached $2,700 but fell back to $2,550 after Bitcoin corrected gains.
A healthy correction!
Well, as bulls, we all like to see daily green candles and the price rising without any resistance. But that kind of market is unsustainable. In fact, markets need to correct from time to time in order to prevent an entire collapse. We all scream manipulation when Bitcoin keeps falling and falling. But when the markets keep rising continuously without any correction, the truth isn’t faced by anyone.
The recent correction is a good sign if it is able to hold above $39,300 or at least the 200 daily EMA for us to stay bullish. And if these levels hold, we could again see Bitcoin above $42k in a day or two. Even the altcoins saw positive gains in the last week and have been correcting gains now. But while some held on to these gains quite positively after the Bitcoin retreat, some saw even higher lows.
The bull run isn’t over.
Yes, even though the markets don’t seem that bullish, the bull run isn’t over. This is not financial advice, but I do have a logic that you might agree to. The amount of Bitcoin taken off exchanges are increasing, and the illiquid supply is going up. There is soon going to be a supply shock in the last quarter of 2021 or the beginning of 2022 that could push the price of Bitcoin above $100k. The most important thing for his to happen will be for Bitcoin to be above $30k. Bitcoin’s 10 day green streak is just the beginning. Very soon, we might see even more gains in small intervals due to this supply shock.
What are your thoughts on Bitcoin’s 10 day green streak? And do you think that the correction that recently happened is good for the currency? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: El-Erian says it’s time for the governments to stop calling crypto a scam or speculation.