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Bitcoin Price Enters Massive Correction - What Will Be The New BTC Price Support Levels?

A massive Rally to the $13,700 levels 

After surging for eight consistent session and giving investors 40% returns in one last week, Bitcoin has hit a speed breaker entering massive correction on Wednesday. 

Over the last one week, the Bitcoin price surged in a massive price rally to make its new 2019-high before finally retracing back on Wednesday, June 26. 

If we look at the Bitcoin price chart, it went all the way from $9300 levels on June 20, to surging above $13,700 levels on Wednesday, June 26. Bitcoin managed to give a whopping 40% returns to its investors in eight straight sessions of its price surge. 

The Bitcoin price rally was supported by the launch of Facebook’s Libra cryptocurrencies and maybe some global economic factors such as the Chinese Trade War. However, on Wednesday, June 26, the bears strike hard as Bitcoin has lost nearly $2000 in the last 24 hours losing over 15% in a massive price correction. 

At the press time, Bitcoin is trading at $10,700 with a market cap of $191 billion. The daily trading volumes have crossed a massive $41 billion as Bitcoin continues to dominate over 61.7% of the overall cryptocurrency market. 

 

Omenic's Sentcore (our own proprietary sentiment indicator) for Bitcoin has left the
"very positive" zone when the Bitcoin price has crossed the $11,000 resistance

 

Comparing the Movements of Bitcoin and Gold 

With the growing global economic uncertainty and rising tensions with the U.S.-China trade war, the most popular hedging commodity Gold is getting a lot of limelight. The gold price has surged nearly 10% in the last one month. 

Some crypto analysts and financial experts often try to relate the Bitcoin performance to gold. Both are currently seen as a potential hedge to the falling traditional fiat value and the stock markets. 

Recently, support of Gold investment Peter Schiff asked the investors to “buckle up” as Gold broke $1400 levels.  

 

 

Bitcoin investors who obviously tend to support the digital token over the precious metal commodity started to mock gold by growing comparisons of their recent performance. 

 

 

However, financial analyst Arthur Ven Pelt puts some interesting counter arguments suggesting that Gold’s bull run can “eat Bitcoin alive”. Pelt notes that Gold’s existing market cap is $7.5 trillion while Bitcoin’s market cap is $220 billion. Thus, even when Gold surges by just 3%, it adds the entire market cap of Bitcoin. 

 

 

Data from goldsilver.com shows that BitPay customers are shifting their recent Bitcoin profits to buying gold. 

 

 

Bitcoin proponent and eToro senior market analyst Mati Greenspan has also called Grayscale’s “Drop Bitcoin” campaign as childish. 

 

 

Crypto Analysts Raised Pullback Warning After Bitcoin Crosses $13K

After the recent pullback in the Bitcoin price, some analysts have pressed the buzzer signalling further correction. On the other hand, others still continue to remain hopeful in this scenario looking to the recent bullish trend. 

Popular crypto trader Josh Rager has shrugged-off the recent pullback as any major correction. He notes that this pullback is still minor in comparison to the earlier 20% price correction. Roger says that he would only consider this to be a serious downfall if Bitcoin slips below the mid $10K levels. 

 

 

Note that Bitcoin is currently trading at $11,000 and any correction further can lead to downward pressure. If Bitcoin corrects over 30% from yesterday’s high, its price could break up to $9000. 

 

 

Travis Kling, chief investment officer at Ikigai Asset Management, is eyeing further pullback and warned investors regarding the same. He tweeted:

 

 

While speaking on the volatility of Bitcoin, popular crypto analyst Peter Brandt tweeted:

 

 

Crypto Exchange Hit With Outage

 

On Wednesday, June 26, cryptocurrency exchanges witnessed a massive rush of crypto traders. Crypto exchange Coinbase experienced an outage for a short time soon as Bitcoin lost over $1500 in just a few hours. 

 

In its status update, Coinbase stated that the outage was all across its website, mobile app, and API. However, it also added that all its internal systems were working absolutely fine during the same period. 

 

Popular trading app Robinhood also witnessed issues with its crypto trading service. 

 

Bitcoin Crucial Support Levels and Long Term BTC Price Prediction

 

With yesterday’s massive price crash Bitcoin has already broken its crucial support levels on the technical charts. Now the immediate crucial support for Bitcoin is $10k as it will be playing a crucial role in determining the next trajectory. 

 

However, when Bitcoin has crossed $10K levels, many crypto analysts suggested mammoth targets for the cryptocurrency in the long term. Thomas Lee, the founder of Fundstrat Global Advisors, stated that if FOMO kicks-in Bitcoin can cross its previous all-time high of $20K by the end of 2019 and move ahead surging by 200% to 400% from the current levels. 

 

 

Crypto analyst ‘Galaxy’ tweeted that looking at the current candle-setup in the BTC chart, Bitcoin can possibly hit $62,000 price levels in the next 137 days. 

 

 

 

 

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About the author
Pierre-Alexandre
By Pierre-Alexandre

Pierre-Alexandre is passionate about new technologies and innovation. After several years of experience in software and innovation agencies, he wanted to go all in on the blockchain revolution and co-founded Omenics.

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