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BTC price prediction: correction to $28,000 following Bitcoin price plummet today

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TL;DR Breakdown

  • BTC price prediction expects healthy correction toward $28,000
  • Bearish plummet sees BTC price drop more than 10 percent
  • Volatility shows steep incline as price falls more than $4000 in value
  • Some support found around the $30,000 mark
  • If the $26,000 support level is broken – BTC price may drop to lows of $23,000
BTC price prediction: correction to $28,000 following Bitcoin price plummet today 1

BTC price has seen an overwhelming journey through the festive period in December. What was thought to be a seemingly endless bull run has finally seen a healthy price correction dropping BTC price from highs of almost $35,000 to lows of $28,000.

As retail and corporate businesses delved into the store of value that is Bitcoin, we saw BTC price soar beyond all expectations and hit over $35,000. Despite this wonderous sky-bound climb, the calm before the storm has finally ended.

At the time of writing, BTC price is $30,170 – down almost nine percent on the opening price of the day.

Use the oscillator below to check what role BTC might play in your portfolio.

BTC price prediction: 1-Day chart overview

BTC price prediction: correction to $28,000 following Bitcoin price plummet today 2

On the 1-Day chart overview we can see BTC price begin its descent below the $30,000 mark – touching upon $28,000 before being bought back up to above $30,000.

Volatility begins to spike on the Historical Volatility (HV) chart, reaching a HV value of 90 as the price drops over 10 percent in value. Comparing this to the Relative Strength Index (RSI), we can see that – on the 1-Day chart – BTC is still somewhat considered overbought and due to receive a healthy price correction.

As volume begins to amass bearish, this could signal a big sell-off and price correction for Bitcoin through the week.

BTC price prediction: 1-Week chart overview

BTC price prediction: correction to $28,000 following Bitcoin price plummet today 3

Observing the 1-Week chart overview, we can see a similar layout to the 1-Day chart. The correction in BTC price looks healthy so far and could understandably be expected to dip lower to $28,000 for steady bullish movement to continue.

The HV indicator shows us a steady incline in volatility as the price begins to recede towards $30,000. This would normally suggest some resistance to the bearish activity, but the RSI contradicts this showing that BTC has been heavily overbought and is now due correction.

Volume through throughout 2020 after March remained on a stern and steadfast bull run. The volume starts the week bearish with this sudden $4,000 drop. More bearish action could be expected before the week is out.

BTC price prediction: volatility chart overview

BTC price prediction: correction to $28,000 following Bitcoin price plummet today 4

The volatility chart overview helps to provide clarity on the general trend of the market.

As BTC price begins to retrace back down towards $28,000 levels, a clear spike in volatility indicates that this movement seeks to go against the tide. As volatility climbs, BTC price should steadily return bullish if the price correction is accepted. If not, we might see BTC price drop even further toward $26,000 as the next support level on the downside is around that mark.

BTC price prediction conclusion: healthy price correction directing BTC price towards $28,000

BTC price prediction: correction to $28,000 following Bitcoin price plummet today 5

This BTC price prediction concludes that BTC price should see a healthy correction here – further falling towards $28,000. This would allow the reaccumulation of Bitcoin to rearm traders for the climb towards the next bull run target of $40,000.

As long as Bitcoin does not fall below $26,000, we should see a bounce between $28,000 and $26,000 and the emergence of a revitalized bull run. However, if it does fall below $26,000, we may see BTC price continue to drop to the next support level of around $23,000 before recovery.

As always, trade safely, carefully, and only trade what you can afford to lose.

Joshua O'Sullivan

Joshua O'Sullivan

Joshua has been a professional writer, editor and proofreader for close to a decade. He has created books, resuscitated multiple patients and managed to survive multiple life threatening experiences. With these experiences, he is always willing to strive to the challenge of any opportunity presented.

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