Bitcoin Corrects – Here Are the Reasons!

Last Updated: 18. Dezember 2023By

For eight weeks now, I have been advocating for a massive increase in the Bitcoin price up to the 44,400 US dollar price range per piece. And that’s exactly what happened last week. The crypto currency rose from below 34,000 US dollars to 44,741.85 US dollars since that analysis. Then a correction set in.

At this point, let’s take a look at the weekly chart in Figure 1. The lower of the two red areas corresponds to my target zone issued eight weeks ago. At that time, the Bitcoin had bounced off the blue 200-day line upwards and had exceeded the highs formed in the first half of 2023.

Last Friday, this red area was touched and in the last week the first profit taking began to cause the Bitcoin to fall slightly. This behavior is quite normal after an increase of almost 30%.

Figure 1: Chart analysis of Bitcoin to USD. The weekly chart is displayed.
Source: TAI-PAN

The short-term uptrend could be slightly undervalued I recently insisted that the positive seasonality during the last three weeks would cause the Bitcoin to rise. And that’s exactly what happened. Now the gray seasonal line in Figure 2 initially shows a sideways trend that should end around December 28th. I assume that the Bitcoin might briefly cross the green uptrend downwards, but will then take the path north again towards the end of the year and once again approach the year’s high of 44,741.85 US dollars per piece.

Figure 2: Chart analysis Bitcoin to USD. The daily chart is displayed.
Source: TAI-PAN

Conclusion: Once again, I stick to my assessment – the bull market in Bitcoin remains intact. The current correction is due to the usual profit taking that inevitably comes after such a strong increase. The correction could go a bit deeper. In Bitcoin, a long position in the range of 40,000 US dollars could be worthwhile in order to benefit from another upward movement towards 44,741 US dollars per piece.