Bitcoin (BTC) has gained momentum in recent weeks as the price approached $ 20,000 full time. However, this impressive rally has come to an abrupt end: Bitcoin has dropped significantly in the past 24 hours.
While most investors celebrated a potential new full-time job, the bitcoin price dropped from $ 19,500 to $ 16,300, down 15% in less than 24 hours. Most cryptocurrency markets followed suit, with a dark red highlight on November 26.
Bitcoin is losing its critical support level and dropping sharply
Important place to keep between $ 18,400 and $ 18,700 lost. This field has been important as a support for several reasons. The first is the immediate failure of the trend.
If the Bitcoin price falls below this level of support, it means that the trend reversing every previous resistance to the support has failed.
As you can see from the chart, the break triggered a bearish chain reaction. This is the second reason, as losing this level created many stops, giving fuel for the fall.
In the past, many traders expected more gains as funding rates were favorable on most exchanges. This breakdown and the inevitable chain reaction of stop-loss triggers is a typical consequence of a trend reversal.
In fact, market corrections do not happen smoothly. It is often vertical and painful. Walk up the stairs, lift down.
The total market value can be adjusted to $ 400 billion.
Weekly overview of the total market value. Source: TradingView
Often the weekly chart of total cryptocurrency market cap gives a clearer perspective.
This brought the total market value to the Fibonacci level of 1,618, where it encountered resistance equivalent to $ 600 billion.
Most importantly, the overall market value reached a new high and broke the previous $ 400 billion resistance area.
The $ 400 billion break was the first breakthrough in more than two years, as the level has been a tough hurdle in recent years.
Therefore, to confirm the correction to this resistance level, a new and completely healthy support should be expected at the start of a new bullish cycle.
Most importantly, a rebound to this level will also adjust to the 0.35-0.382 Fibonacci area, which is often used by traders and investors to look for a potential entry.
What levels should you look for in bitcoins?
The Bitcoin price chart shows a breakout below the $ 18500-18800 range, and this is the key resistance immediately to the breakout should the market turn bullish again.
However, the range between $ 15,800 and $ 16,300 is an important support area that should be held currently as one on the daily timeframe.
In light of this, a new scope is created. As long as Bitcoin maintains support above $ 15,800-16,300, the beef market is likely to resume.
However, if it does not maintain support, further correction to USD 13,800-14,200 is expected. This level is high in the summer of 2019 when the next bullish support / resistance reversal may occur.
In higher timeframes, $ 18,000-18,200 is the first obvious hurdle to overcome, as the level of Bitcoin’s price failure to overcome earlier today was with a bounce. If it crashes, the next area is the hunt for $ 18,400-18,800, and the chain reaction started today.