{"id":457272,"date":"2021-02-22T11:00:56","date_gmt":"2021-02-22T11:00:56","guid":{"rendered":"https:\/\/uniquehot.com\/?p=457272"},"modified":"2024-06-11T07:18:19","modified_gmt":"2024-06-11T07:18:19","slug":"bitcoin-drops-after-record-setting-rally-is-bearish-bias-returning","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bitcoin-drops-after-record-setting-rally-is-bearish-bias-returning\/","title":{"rendered":"Bitcoin Drops After Record-Setting Rally; Is Bearish Bias Returning?"},"content":{"rendered":"

Key Bitcoin Takeaways<\/h2>\n

Bitcoin plunged by almost 5.5 percent on Monday after setting up a record high in the previous session.<\/li>\n
The one-day drop is the largest since February 10, pointing to extended intraday declines as the European session matures.<\/li>\n
Long-term sentiment remains bullish on growing corporate adoption against the US dollar depreciation.<\/li>\n<\/ul>\n
Bitcoin (BTC\/USD) sold off heavily throughout the Asian and early European session on Monday after achieving a new record high of $58,367 in the previous session.<\/p>\n
The flagship cryptocurrency was down by up to 5.5 percent after the London opening bell, flirting with short-term technical support near $55,550 for an extended bearish breakout move. In doing so, BTC\/USD targets the $52,000-54,000 as its next downside target.<\/p>\n
Looking from a broader perspective, the pair appeared to have been testing an upward sloping trendline that acts as a price floor to a Rising Wedge pattern<\/a>. Technically, a break lower risks sending the Bitcoin price lower by as much as the Wedge’s maximum height (which is about $10,000-long).<\/p>\n
That puts the cryptocurrency on a corrective course to $45,000\u2014about 20 percent lower from the latest peak.<\/p>\n
$\"Bitcoin,$ <\/a>
Bitcoin’s Rising Wedge pattern points to a 20 percent correction ahead. Source: BTCUSD on TradingView.com<\/figcaption><\/figure>\n
```
Bitcoin's Rising Wedge pattern points to a 20 percent correction ahead. Source: BTCUSD on TradingView.com<\/a><\/pre>\nNevertheless…<\/h2>\n…rising wedges have failed previously while determining Bitcoin’s short-term bias.<\/p>\n
There is a massive possibility that Bitcoin locates a support area above $50,000 before it resumes its upward momentum. The reason remains its corporate\/institutional adoption against the long-term risks brought by inflation and fiat depreciation.<\/p>\nTesla<\/a>, MicroStrategy, Square, Stone Ridge Holdings, and many other corporate firms have added billions of dollars of combined Bitcoin worth to their balance sheets in the last few months.<\/p>\n
\nThis is not a bear market, just a healthy reset of the markets and actually quite organic for the contiuous growth of the #crypto<\/a> markets.<\/p>\n
— Micha\u00ebl van de Poppe (@CryptoMichNL) February 22, 2021<\/a><\/p><\/blockquote>\n
```