Bitcoin Projected to Drop by About 30% As It Goes Into Consolidation

After an epic surge that caused it to rally close to its all-time high yesterday, Bitcoin (BTC) is starting to show signs of a slow down. Although BTC appears to have entered a consolidation, there is still the likelihood that the cryptocurrency could see a fresh leg up.

However, there is also the likelihood of a steep correction from this level—as much as 30%—considering that previous bull markets have seen such pullbacks.

This idea of a pullback comes from Peter Brandt, a well-known charting expert, and he believes that Bitcoin is going to see a significant decline since its monumental 30% rally since the beginning of November. He mentioned that there were nine notable corrections in BTC during the last parabolic bull run from 2015 to 2017, with an average decline of 37%.

The last major correction was in early September this year when the benchmark cryptocurrency fell from around $12,000 down to the $10,000 area, in just four days. Although this was a 15% correction—half of the average from previous cycles—Brandt proposes that the next one will be significantly larger.

A projected 30 percent correction from Bitcoin’s current price would send it back to the $12k area, which is still a significant amount from its position around the beginning of the year.

Nonetheless, there is also the expectation that a pullback at this time would not be as violent as the past cycles considering that several institutional bodies and corporations have stocked up on BTC, which significantly lowers volatility for the cryptocurrency.

Key BTC Levels to Monitor — November 19

BTC has entered into a consolidation range, as we anticipate a modest price correction in the coming hours and days. Already, Bitcoin has formed a bearish flag, further solidifying the prospects of a dip. A dip from this level is going to be caught by the $17,200 support. Further declines below that level could send Bitcoin on a longer bearish extension.

Meanwhile, our key resistance levels are at $18,000, $18,490, and $18,800. While our key support levels are at $17,200, $17,000, and $16,500.

Total market capital: $502 billion

Bitcoin market capital: $332 billion

Bitcoin dominance: 66%

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