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October 5, 2022
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Guide & Analysis

Healthy Bitcoin Correction – No panic!

Drop of more than $ 11,000 in bitcoin. Healthy Bitcoin correction, at least for now

On February 22, Bitcoin dawns sharply. The price reached $ 46,700, and less than 24 hours ago we were seeing the BTC at $ 58,300.

Graph by TradingView

It is more than $ 11600 (more than 63 thousand reais). However, we already see some recovery and at this point the price is around $ 53k- $ 54k.

What does the graph tell us?

In the 4 hour chart time (H4) we have a touch on the EMA89 supports (black line) and also the horizontal line support at $ 48097. After it touches those regions, we can see a rejection and the price back up; for traders, these supports may have been good buying signals.

At that time, Bitcoin tests the $ 54036 resistance and confirms a break down from EMA21 (short blue average). If this resistance rejects, we can see a first sign of stronger correction, but it still does not directly indicate that it will continue to fall.

The support point of EMA89 on the uptrend chart is very strong and, for now, everything is fine.

It starts to worry about a trend reversal if there is a break down of EMA89 with confirmation of closure and volume, then we can see the fight in EMA200 (red average).

At the moment, there is nothing to worry about.

The trend continues upwards, the RSI is right in the middle of the road and the price is above the main averages.

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