Bitcoin Just Plunged $700 Upon Reaching $9,060, Correction or Reason To Panic?

[john1010]

Today we got another reminder that volatility is working both ways.

Bitcoin has fabulous times since entering the new decade. However, when we see such a parabolic move to the upside, we can expect volatile moves to the other side, as well.

Just yesterday, we mentioned Bitcoin price reaching its first major test – the 200-days moving average line (marked light green on the following chart). Many analysts see this tough resistance as the barrier between Bear and Bull markets.

Today, Bitcoin surpassed the crucial moving average line (roughly around $9060). However, shortly after recording a daily high (and year to date) at $9188 (Bitstamp), we received a MEGA dump.

Besides, on the 4-hour chart, we can clearly see Bitcoin reaching the top area of the marked ascending channel.

Bitcoin lost over $700, plunging to the $8400 old resistance level. As of writing these lines, Bitcoin had recovered a bit, trading above the $8600 resistance level.


Current Price in Binance 1 minute chart:

[o48o]

Looks healthy to me, i would be more alarmed if it suddenly went up from there. Steady rise with high volatility is something i can deal better with then parabolic rise.

[john1010]

Looks healthy to me, i would be more alarmed if it suddenly went up from there. Steady rise with high volatility is something i can deal better with then parabolic rise.

This latest plunged made me set a buy order with a good price    

[john1010]

it's just correction

Yeah, maybe btc will hit $10k this January, just my thought

[djgtr]

Looks healthy to me, i would be more alarmed if it suddenly went up from there. Steady rise with high volatility is something i can deal better with then parabolic rise.

Hopefully we can deal with it without any fear of bearish market, because volatility is one of the reasons why more people panic due to lack of adequate analysis. Most non skilled traders just get updates from FUD makers who made statements with exaggerating stories, which affects them emotionally.
My advice with them, don't rely with unknown sources and make your own price analysis to avoid being deceived by several news manipulators.

[duuuuude]

It seems to me that it was predictable that Bitcoin probes 9k and rolls back. Personally, I have fixed the profit and am now preparing to buy some more bitcoin.

[pikkie]

It seems to me that it was predictable that Bitcoin probes 9k and rolls back. Personally, I have fixed the profit and am now preparing to buy some more bitcoin.

what I see is the work of a number of whales who try to profit by selling at high prices, causing prices to fall and being able to exert a lot of influence by other traders, which eventually makes many traders panic and sell their assets at low prices, even though the price of bitcoin can go back up again.

[Bananington]

It's not a reason to panic, it's normal correction since it's now a little above 8.6k$ and shows sign of uptrend. However, I think the upcoming Chinese new year might influence the market negatively, well I hope it doesn't affect it much. However, after this Lil dump, I expect a massive uptrend since everyone will be singing the "halving hymns".

[bitzizzix]

In my opinion, the current decline in bitcoin is not too sharp and is still in normal conditions, and the price of bitcoin has not touched $ 7,000 as you said and at the moment the price is $ 8600 which in my opinion is still in a good price position.
do not panic because in my opinion the price of bitcon will return to the price of $ 9,000 or exceed that price in the near future.

[samuraijin]

in my opinion it's only a correction on 1D so there is no problem about the price of bitcoin going down, because bitcoin is not a pump so it has peaked for this week, so the next few days may be corrected down for a while because the charts on 1D will go down, at least the price has touched above $ 9,000, it looks like it won't be under $ 7,700

[Captain Corporate]

 There is really no reason to panic unless this is your first ever "crash" of bitcoin, this is not really a crash but it was a big drop in price and I couldn't find any words to describe it aside from crash, sure its not 2k+ drop just 500-600 but its still a drop nevertheless. Hopefully this is at the realm of recovery and we will recover quickly, I can't talk about what will happen of course, I am not a financial analyst or ever claimed to be, maybe it will go down, however from years of being around the crypto market I can tell you that when the price drops less than %10, usually thats not a major panic button issue, only be scared when it goes down more than %10, reason why most of the time I have a %10 stop loss as well.

[Xardasim]

it's just correction

Yeah, maybe btc will hit $10k this January, just my thought

I think that we will see some decrease due to the coming New Year, then there is no reason to prevent the increase.  In the current situation it was expected to approach $9000 and move down again, and it was so.  Lets wait a little more, then we will easily reach $10000.

[Thomas-s]

I’ve been waiting for a few weeks when there will be a correction and now it has come. I do not think that everything is becoming very bad, but I expect that now the price can again return to the level of 7 thousand dollars for bitcoin. this is a very normal and predictable movement. I already said that this growth was created in order for everyone to start buying bitcoin, and then the price will return to its previous values.

[gweedo]

The price has suddenly dropped 700$ in a few hours, so I think this is not a correction. A few organizations or someone panic sell at this price level and cause the price to collapse as it is today, I hope it does not affect too much bitcoin price in the coming days. And my goal is quite similar to yours, hoping to see BTC go up to $ 10000 by the end of January

[Xxmodded]

Maybe correction bitcoin more than $700 for growing to higher price and never panic your self and keep hold bitcoin assets until halving coming, I know is the way for bitcoin correction an touch more than higher price to $20,000 and keep investing your money with bitcoin, never heard some one want to ask you sell bitcoin with lower price.

[socks435]

Well, I agree of the above post that there is a big organization that I think sold their holdings after the price reach their target price.
Then suddenly price has drop and I believe that many people who holding big amounts also sold their bitcoin because their target price is around $9,000. Those people who sold their bitcoin are people who bought bitcoin at cheaper price maybe around $7000 so if they can sell it at $9k they can make a good amount of profit. So I don't believe that this is because of correction so believe more if people who bought bitcoin below $8k and make profit today.

[hirngespenst]

That was correction I believe because the growth of bitcoin price seems very positive! It can go back to 9K USD anytime! We don't need a quick pump and dump scheme! Though there will have dump as the Chinese new year coming!

[ije07]

The price has suddenly dropped 700$ in a few hours, so I think this is not a correction. A few organizations or someone panic sell at this price level and cause the price to collapse as it is today, I hope it does not affect too much bitcoin price in the coming days. And my goal is quite similar to yours, hoping to see BTC go up to $ 10000 by the end of January

It seems to be true that it's not a correction but the current decline in the price of bitcoin can be because someone is panicking selling when they see the price of bitcoin dropping at the same time. but I think it will not continue for long, I am confident that bitcoin can come back again reaching the price of $ 9k - $ 10k in the near future.

[Tipstar]

If you started panicking for such movements, you'll have a problem watching the price change. Every rapid growth has a correction and of course it's just another correction just before the Chinese enjoy their new year. After that, the price of bitcoin would probably increase in a rapid pace to reach a new ATH around halving.

[ReiMomo]

Stay put, dont be panicked because that is only a small correction. Just like what happened last month, a small correction has occurred after it will reach to $9k. Probably this is a chance that we start to accumulate and full bag. The next halving has nearly come and I believed bitcoin price will rising up after the halving will effectively happen. There's no news yet what is the reason for drastically drop but I have doubt just a small correction.

Probably you should move this to bitcoin speculation.