Bitcoin suffered a seven percent correction on Wednesday, falling to as low as $17,620 across various exchanges.
All eyes were on the Bitcoin Futures market on CME as it filled the gap from the final weekend in November.
This is pivotal as it was seen as one of the key hurdles Bitcoin needed to pass before potentially rallying to a new all-time high.
As expected, Bitcoin healthily bounced from this level with it now trading up at $18,275 following a 3.5% recovery.
However, it is not out of the woods yet as tonight’s daily close and sunday’s weekly close will decide whether more downside price action is to come.
If price plunges further beneath the $17,620 level, it would signal that a local top is in place at $19,800 and that it may suffer a further correction to as low as $15,000.
It’s worth noting that Bitcoin remains bullish on all higher time frames, although that isn’t the case for altcoins with the likes of Ethereum losing momentum against the world’s largest cryptocurrency.
Ethereum dropped to $530 on Coinbase and while it has since recovered to $560, a failure to breach the current level of resistance will demonstrate that a short-term reversal is in play.
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