These aspects may impact the short-term price movement of Bitcoin.
After a smashing move to create a new ATH at $ 67,000, the price of Bitcoin took a well-deserved break as it fell almost 10% over the next two days. As of this writing, however, BTC is trading at a decent price of $ 62,744 and has seen daily gains of over 3%.
As the gains renewed the market’s anticipation of the BTC price, the euphoria seemed to be resuming. Nonetheless, the two-day consolidation had triggered fears of a dip to levels below $ 60K.
So while the possibility of a dip below $ 60,000 cannot be entirely ruled out, here are some signs that should be kept in mind in case another short-term correction occurs.
Critical support holds
Despite the nearly 10% drop in the price of BTC after its ATH on October 20, the Royal Coin seemed to hold the $ 60,000 mark pretty well. However, many market analysts had anticipated a correction to $ 55,000, which did not appear to be expected for BTC at least at the time of writing.
On-chain activity appeared to support the BTC rerun. In fact, in particular, despite the recent decline, active users were starting to get more and more euphoric about the state of the market. In addition, the number of unique coins circulating on the blockchain network also increased monotonously with the price. The sustained upward growth further highlighted increased utility on the network as well as the buying incentive for investors.
Source: Sanbase
But the euphoria must set in
While on-chain activity seemed scintillating, high social volume and high weighted volume caused some concern in the market. The euphoric state of the market was quite high and especially social measures saw a high weighted volume showing high social anticipation among participants.
Usually when the euphoria is high the price tends to move in the opposite direction and when greed sets in people start to take cautious action.
Source: Sanbase
That being said, if BTC sees another near-term correction, the next immediate supports will be $ 56,000 and $ 53,000. However, with a price noting more than 3% daily earnings at the time of writing, the odds of a drop at any point seem slim. If a drop to $ 55,000 occurs, it could turn out to be a blessing in disguise before BTC rallies in earnest. For now, however, the best strategy would be to sit still and HODL.