We recently witnessed a "melt-up" of bitcoin, which went form 10,000K USD to almost 17,000K USD in about a week. We are now seeing a correction. But how low will Bitcoin correct? It already found buyers around $13,000. I think the next key support will be around $11,000.
- The 4H chart shows how BTC accelerated in December.
- As price falls, we are still bullish in the short-term, based on December's speedline.
- We might not see a correction back under $13,000 because we already saw strong buying there.
- In bitcoin's run in 2016-2017, when a correction found support, BTC usually held above that level.
- But if BTC/USD were to extend the current correction, the next key level will be around $11,000.
- I think 10,000 is a hard support, but price might not get back there.
- At 11,000, BTC/USD will see a rising speedline from November, as well as a support/resistance pivot.
- The RSI will likely be around 40. These will be like the last line of defense in the short-term, so let's monitor 11,000 as the next level of support.