WEEKLY NOTION: Bitcoin at $5,000: How Likely is Such a Massive Correction?

It’s not uncommon to see considerable corrections in the market after massive rallies like the one Bitcoin is experiencing.

Around $80 billion were wiped out from the market in less than 24 hours, and some analysts believe the price could go even lower.

What's the next target for Bitcoin price?

After a 15% downward correction, many analysts are posting their ideal levels and their thoughts about the pullback.

Although massive corrections between 20-30% are not uncommon when Bitcoin is in a bull rally, they could be the first sign of a potential reversal. 

Dyme, a popular crypto analyst on Twitter, says he is not yet prepared to go full bearish mode on the flagship cryptocurrency but believes it is likely dropping towards the 0.382 Fibonacci retracement level at around $13,500.

Dyme’s lowest level for Bitcoin seems to be approximately $5,433, which would still be a higher low than the crash during the coronavirus pandemic.

Other analysts are not as pessimistic and believe Bitcoin is doing something similar as it did before the 2017 massive rally to the all-time high.

It seems that the Bitcoin price had several 34% corrections after reaching all-time highs throughout 2017.

As discussed in one of the FXStreet's latest articles, the pioneer cryptocurrency is prone to suffer major corrections during bull rallies.

Such pullbacks usually end up lasting a few weeks before the next high. The current retracement is only around 17%, which is significantly lower than the 30-40% nosedives seen between 2015 and 2017.

Therefore, the ongoing correction could either lead to lower prices or it just may not be a major one.

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