Why a 30% Bitcoin worth crash mustn’t catch you off guard proper now

The Bitcoin worth rally halted the second Joe Biden was introduced because the projected winner of the 2020 United States presidential election in the course of the weekend, with the worth dropping from $15,500 to $14,400.

Nonetheless, Bitcoin continues to be constantly exhibiting energy because it’s as soon as once more going through the ultimate resistance zone at $16,000.

This remaining resistance zone is the final main hurdle earlier than a possible run at a brand new all-time excessive. Nonetheless, a pullback is turning into more and more doubtless, with the Worry & Greed Index at the moment at ranges much like the height excessive in the summertime of 2019.

The weekly stage at $16,000 doubtless massive resistance

BTC/USD 1-week chart. Supply: TradingView

The Bitcoin weekly chart exhibits the $16,000 stage as the ultimate resistance zone earlier than a brand new all-time excessive will be examined.

The weekly chart additionally exhibits help ranges if the worth of Bitcoin begins to right. A correction can be comparatively wholesome if it flips earlier resistance ranges to change into new help.

If a correction happens, the weekly stage of round $11,600 to $12,000 ought to be watched as a possible help zone. Such a correction would imply a drop of roughly 30% for Bitcoin’s worth. A correction of 30% is sort of regular, as this occurred just a few instances in the course of the earlier bull cycle in 2017.

“Excessive greed” much like summer season 2019

The Crypto Worry & Greed Index is a helpful indicator to measure the present market sentiment. In extraordinarily depressed intervals, the index makes use of the colour pink to mark the general sentiment.