The Bitcoin price index is currently in a big bull move. The cryptocurrency’s worth has increased more than 50% in the last one month alone and currently it is being traded at around the $18k level at press time. While HODLers would love the rally to continue on, the market may be in for a correction, but nothing big and it might not happen before the $20k level is breached.
The $20k Resistance
The $20k figure was a longstanding price target for the bulls. For long, the cryptocurrency languished in the $5000-$10000 range for almost 2.5 years. It seemed like the $20k could never be achieved once again. So now the Bitcoin in deep bullish phase and closing in on the all-time high figure of $20k seems surreal. Now we are within 10% of the historic $20k high. However, the meteoric rise of the cryptocurrency’s value has resulted in some overbought conditions. Analysis show that there are lines of sell orders between $18k and $19k. But, buyers can’t get their hopes up yet as there is also a long list of buy orders in between $17-$17.5k.
When is the Next Dip?
So, that brings us to the all-important question; when will be the next big dip? There are two scenarios:
- If Bitcoin fails to hold the price, it will come back down till $16800 according to the charts. The meteoric rise of the cryptocurrency means there is still potential for a sudden slump back to where it started. However, the lines of buy orders around $17k makes us thing it might never happen. However, in the case that it might happen, there is also a lingering possibility that the price pullback may go deeper than $16k to around $14k. But, the FOMO is real at the moment.
- Bitcoin reaches $20k and then dips back to between $16-17k. For this to happen, the resistance around the $19k level need to be broken free of. There are a considerable number of sell orders there but will they be enough to nullify this lingering bull move? Only time can tell.
So, buyers who are looking to “buy the dip” might need to wait a bit before a recorrection can actually be witnessed. Right now, the cryptocurrency is still well within its power to continue on with the exciting bull run.