Bitcoin is still moving downwards making today one of the biggest correction days with the entire crypto market falling.
To date, the crypto market cap has fallen by more than $ 270 Billion and there doesn't seem to be any sign that appreciation will happen again.
To date, Bitcoin has corrected around 22.8%, even reaching the $ 45,000 area from around $ 58,000 previously.
At the moment, the correction is likely to continue even though on the 1 Hour chart Bitcoin price starts moving upwards.
However, it seems that in the future this impetus cannot be ascertained as a return to appreciation.
When viewed from previous price movements, currently the Bitcoin movement is undergoing several deep corrections.
In January 2021, Bitcoin underwent a correction of around 31.5% before increasing significantly by around 50.8% to reach a high of $ 58,000.
As an appreciation since December 2020, Bitcoin has experienced several corrections of 10% to 20%. So, given the volatility, the current correction is still reasonable.
However, reflecting on its last correction in January 2021, it is likely that this correction will take Bitcoin towards $ 40,000 to around $ 38,000.
If this limit is breached, there is a high chance Bitcoin will fall back into the $ 30,000 area. But there are a few things that can prevent this from happening.
There are two things that are likely to push the Bitcoin price back towards the $ 50,000 area.
The first possibility is Jerome Powell's statement that the market predicts will again encourage stimulus policies and weaken the US Dollar.
Jerome Powell's speech to be delivered today, Tuesday, February 23, 2021 at 22.00 WIB can provide positive hope for Bitcoin and other risky assets such as stocks to rise.
The second possibility is the easing of the effects of the American tax season, which unfortunately ends on April 15, 2021.
This tax season is when the majority of Americans and large corporations are required to report all their income taxes.
So at this time it seems like there is a sale of several assets that could potentially be classified as income, such as Bitcoin and crypto which makes the price go down.
Therefore, there is still hope that can push Bitcoin back.
In addition, positive possibilities could come from some large companies planning buybacks such as MicroStrategy, given their low prices.
One of the things that supports this normal correction is Peter Brandt, one of the most trusted and well-known traders in the crypto market who stated that,
"Until Bitcoin hits $ 200,000, its price appreciation will contain multiple corrections from 20% to 30%."
Therefore, now is an important time, because it tests the psychological condition as well as investor confidence in Bitcoin.
Risk management as well as the initial plan should always be considered, especially if you want to make purchases at this time, given the relatively low prices.