Bitcoin (BTC) price has dropped in recent months, reaching a new high of $ 24,200. However, there was a correction in BTC on December 21 when stock markets also opened in the red. Bitcoin fell 6% on Monday, while the US Dollar Index (DXY) rebounded strongly.

This decline and uncertainty appears to stem from reports of a mutated strain of coronavirus emerging in the UK and therefore further restrictions on the horizon that could have a major impact on markets, as we saw in March.

In the 4-hour chart, bearish variance shows the distribution from $ 24,000 to Monday’s low of $ 22,000.

However, despite the contraction, this is still much higher than the bitcoin price three months ago, while such adjustments are very common in both the beef market and the bear market.

Therefore, such falls should not surprise experienced traders. This shows the levels you should see in the diagram above. But to confirm the bearish rejection, the bitcoin price has to retrace its previous resistance zone.

If he forgoes $ 23,400-23,600, there will be more flaws on the table and higher time frames will be tested as support. However, if this range of $ 23,400-23,600 goes beyond the range, it is likely that highs will be recorded by the end of the year.

The only bitcoin tier worth looking into at this time is around $ 18,500. At this weekly level, there are many meetings around its previous all-time high, which is the latest area for consolidation.

On the daily timeframe, the last high is at $ 17,500. In other words, the bitcoin price must stay above this level during the day to remain optimistic.

Interestingly, judging by the weekly chart, the drop to $ 12,000 still gives a bullish view of the chart. However, such a correction would be much larger than any standard correction for the beef market between 20% and 40%. But even such a sharp 50% drop will not necessarily disrupt the beef market cycle and provide an excellent buying opportunity.

The DXY expects a slight rebound earlier this week, triggered by the previously mentioned market uncertainty.

As investors seek to find safety in times of crisis and uncertainty, such an event could push the DXY up in the short term. This was seen during the March crash, after which a unique expansion of the balance sheet at the expense of the Federal Reserve marked the peak of the DXY.

The total market value of the cryptocurrency has dropped to its highest range, which means there may be a correction on the horizon.

Often, a general market value chart gives a better overview of the market situation than a single bitcoin. Thus, an adjustment to $ 550 billion should put Bitcoin in the $ 18,500 range, which is an important area of ​​near-term support that needs to be maintained to avoid further disadvantages.

In particular, altcoins could have advantages in early 2021 if the bitcoin price can hold above $ 18,500 and consolidation begins from that point on. Until then, concerns about the coronavirus and insecurity are likely to continue to plague markets.

Source: CoinTelegraph