Yesterday, Bitcoin (BTC) had a significant drop of more than 10% in just a few hours. Since last week, BTC has lost 15% of previous value. However, the altcoins seemed to have made a quick recovery as Bitcoin SV (BSV) and Stellar (XLM) are currently in the green.
Below is the relevant data for BTC at press time:
Market Cap: $130,541,634,309
Volume (24H): $26,309,659,671
Change (24H): -0.65%
BTC/USD: Fibonacci Retracement Indicates Upcoming Growth
In terms of historical context, BTC has returned to its previous positions from mid-May of 2019.
Looking at the 1H chart, BTC is diverging on the relative strength index (RSI) indicator. Currently, BTC's support is located near the $7,100 level. While the price might go below the aforementioned level, it is unlikely to fix itself as the coin is already oversold on most of the indicators. In the short-term scenario, BTC is about to fluctuate between $7,200-$7,300.
When the Fibonacci retracement is applied to yesterday’s bottom (around $6,800) and the previous high (about $10,500), BTC has a chance of bouncing back to $7,621 (23.6%).
The next possible stop could be $8,141 (38.2%). However, it is important to consider such a movement as a correction after a sharp drop, and not the end of the bearish trend.
At press time, BTC is trading at $7,176.