Bitcoin Market Sees Heavy Collapse As Price Corrects Below $48,000

Bitcoin Market Sees Heavy Collapse As Price Corrects Below $48,000
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Although the Bitcoin (BTC) price has risen impressively over the past few weeks, it has gone through a significant correction in the last 24 hours, crashing by more than $10,000. With a nearly 20% correction, the king coin dropped from $58,000 to $48,000.

This setback, which was predicted because of heavy BTC deposits to Gemini, as people deposited 28,000 BTC to Gemini, has also caused a fall in other cryptocurrencies. Bitcoin has thus grown in market dominance.

As corrections begin, market players usually hope they are small and short-lived. As corrections continue, sentiments shift to the negative. Although corrections are needed to keep markets healthy, the sharp rises and falls in the price of crypto assets lend some credence to naysayers who believe crypto assets are Ponzi schemes.

However, it is unclear whether the correction will last and whether Bitcoin's price will hold up above its former compression level. Technically, the period of compression should provide important support.

In view of this, the key indicator to follow is the 21-week moving average ( M.A. ), which is supposed to prevent the cryptocurrency’s price from further declining. Currently, the 21-week MA is at $28,000, and is expected to rise to $32,000-$34,000 in the weeks to come.

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