Bitcoin (BTC) has just experienced a healthy and moderated correction that would allow traders to plan their trading strategies from now on. This correction took place after the virtual currency surpassed $10,000 and remained above that level for a short period of time. The main question that many investors are now making is when will the digital currency resume the bull trend.
Bitcoin Experiences Moderated Correction
After surpassing $10,000 and reaching for a short period of time the $10,100 level, Bitcoin is now once again in the $9,840 region with a market cap below $180 billion. This is what traders and technical analysts call a “healthy correction” that allows traders to make a pause and re-think their trading strategies.
Bitcoin has been expanding since the beginning of the year, allowing its price to enter a new bull market after a second half of 2019 that was characterized by Bitcoin moving from almost $14,000 to below $6,500.
In addition to it, the new bull market seems to be very good for altcoins. Indeed, in some months, Bitcoin’s market dominance moved from above 70% to 63.5%. Cryptocurrencies such as Ethereum (ETH), XRP or Litecoin (LTC) have already surpassed important resistance levels that were keeping these digital assets in a bear trend.
One of the main reasons behind this market push towards $10,000 is related to Bitcoin’s halving event, which is expected to take place in May this year. For those that do not know, Bitcoin’s halving event will be reducing its new issuance of BTC from 12.5 BTC per block to 6.25 BTC per block. This represents a reduction of 50% in the creation of new Bitcoins.
.382 resistance is why this pullback happened. Use this to always remember to monitor Fibs!#Bitcoin pic.twitter.com/fZr8wHNYrq
— Daniel📈 (@CCPool_Daniel) February 10, 2020
In the last 24 hours, Bitcoin lost just 2.61% of its value, with XRP moving down 3.26% or Litecoin falling 4.24%. The two best performing cryptos among the top ten were Binance Coin (BNB) with an expansion of 9.7% in the last 24 hours and Tezos (XTZ) that grew by 9.96% as well. These two aforementioned virtual currencies are the 9th and 10th largest, respectively.
Now users are waiting for Bitcoin to grow above $10,000 and surpass new highs this year. If it does not happen in 2020, many are placing their bets in 2021, one year after the halving event.
