BTC Price Analysis: Bitcoin’s Next Possible Targets If The Sharp Correction Continues

Bitcoin price has crashed hard today in the wake of OKEx announcing the reopening of withdrawals one day earlier than initially scheduled.

Hundreds of Chinese crypto miners who had been previously unable to cash out their BTC block rewards into fiat due to the exchange’s abrupt closure and the CCP’s clampdown on local OTC services are now supposedly dumping their BTC in droves.

With it being Thanksgiving day today, too, not only does the timing of the reopening put US traders at a significant disadvantage, but it also means that any hope of a rebound during American trading hours later today is unlikely.

$72 billion has been stripped from the global crypto market as a result of this event, and on the 4-Hour RSI, the leading crypto asset is now in the oversold region for the first time since September 21.

Price Levels to Watch in the Short-term

On the daily BTC/USD chart, we can see that the top crypto asset has recovered back to the main support line of a large broadening wedge (white lines).

This is a vitally important time for bullish traders, and they will need to defend this level in order to keep Bitcoin’s short-term dreams of breaking its all-time high alive. If they fail at holding this support by the daily close, then we could see prices break bearish towards the first main daily support zone around $15,450 (green bar) before throwing back on to the previous support, finding resistance, and then continuing the downtrend (yellow trail line).

Looking more closely at the 4-hour BTC/USD chart, we can see that prices have so far managed to ricochet off the order block support zone around $16,700 – which has been highlighted as key support in the last several analyses – and return to the next major support zone above (green bar) at $17,000.

If bitcoin bulls can continue regaining lost ground from today’s crash, we should expect retracements to the following levels:

(1) $17,430 – (thin green line)
(2) $17,620 – next major support zone (green bar)
(3) $18,200 – overlapping with 50-EMA line (blue).

On the other hand, if panic and fear continue to drive BTC prices lower, then we should expect the following levels to provide some support during the decline:

(1) $16,660 – order block support zone
(2) $15,880 – $15,970 – 200 EMA line + Key S/R level.
(3) $15,398 – VPVR Point of Control.

Total market capital: $515 billion
Bitcoin market capital: $317 billion
Bitcoin dominance: 61.7%

*Data by Coingecko.