Bitcoin’s Recent $3,000 Correction Actually Formed a Bullish Candle (www.blockcast.cc)

Bitcoin has faced an extremely strong correction since its local highs around $19,500. The leading cryptocurrency currently trades for $17,000 almost exactly, though fell as low as $16,200 just the other day.

That means that from its local highs, the leading cryptocurrency was down by over $3,000.

Many have not taken this correction well: just days ago, there were many expecting Bitcoin to move towards new all-time highs, citing a confluence of technical and fundamental trends.

But this rally actually formed a somewhat bullish candle, despite what conventional wisdom may lead some to believe. BTC  actually bounced at an extremely important macro level.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Forms Bullish Candle Despite Drop

Bitcoin’s strong $3,000 correction actually stopped an extremely important macro technical level: $16,200.

A trader shared the chart below after the brunt of the downtrend, showing that Bitcoin’s weekly candle bounced at the extremely important macro level. As he shows, the level’s importance stretches back to the 2017/2018 highs. The chart shows that Bitcoin actually topped at $16,200 after a dead count bounce after the week that the coin corrected 40%.

Bitcoin finding support here on a weekly basis could confirm that the uptrend remains intact.

It is important that BTC does trade above $16,200 for the next two days to confirm the level as technical support.

Chart of BTC's price action over the past few years with analysis by crypto trader Alejandro (Pastore1314 on Twitter).
Source: BTCUSD from TradingView.com

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For BTC

One More Drop?

Bitcoin may face yet another leg lower, though.

Ki Young Ju, the chief executive of crypto data analytics firm CryptoQuant, recently noted that whales have deposited a larger amount of BTC into exchanges than normal:

“BTC Whales are depositing to exchanges. I expect dumping in the short-run. All Exchanges Inflow Mean (144-block MA) hit 2 BTC. I think we’re in a danger zone. The price is likely to go sideways or down when whales are active on exchanges.”

Investors may be selling those coins, which may result in a further sell-off.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin's Recent $3,000 Correction Actually Formed a Bullish Candle

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Swiss blockchain group formed to encourage new blockchain companies (www.blockcast.cc)

A new group seeking to promote research and support blockchain firms has been formed.

The Ticino Blockchain Technologies Association was launched with the participation of the University of Southern Switzerland, also known as the Università della Svizzera Italiana (USI), and the University of Applied Sciences and Arts of Southern Switzerland (SUPSI). 

The group’s goal is to support research and companies in the blockchain sector and promote academic studies of the technology.

Other founding members are Bitcoin.com, Copernicus Holdings, Eligma, Euronovate, Eventboost, Pangea Blockchain Fund, Poseidon Group, the Quadrans Foundation, StrongBlock.io, Superflat and the Swiss Blockchain Consortium. 

“Blockchain is today a much-discussed technology. It is often said, as with the advent of the Internet, that this technology could change many things with a direct impact on a variety of sectors through improvements in supply chains, financial and payment systems, notary businesses, business processes and governments. These are time-consuming processes that require research, new skills, training, investment, experimentation, and a change of mindset.”

The group added growing interest in blockchain has led academia and private companies to start thinking about creating a center of excellence for the technology and encourage new companies focused on blockchain and make new skilled jobs.

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Author: Refer to Source Cointelegraph By Emilia David