The area spanning $40,600 to $43,000 is a so-called polarity \u201czone of interest\u201d where prior resistance has become future support and vice versa. Over the last 12 months, Bitcoin has reacted in this zone on a number of occasions. A drop below $40,600 would signal further weakness.<\/p>\n
Below Average<\/strong><\/p>\n Over the past two years, Bitcoin\u2019s declines have found support at the 55-week simple moving average, currently at around $46,000. The bear market between April and June that shaved 56% off the token\u2019s price bottomed there, as did the early December weekend flash crash.<\/p>\n The ongoing slide has pushed prices below this key average.<\/p>\n Head and Shoulders<\/strong><\/p>\n A so-called head-and-shoulders top may have been already activated with Friday\u2019s decline. A similar pattern occurred between the February-to-May period, with the token dropping from nearly $65,000 to $28,800.<\/p>\n Bitcoin has currently broken the neckline – if it is pressured further and takes out polarity support at $40,600, the measured objective calls for a test of $26,000 with an invalidation at the right shoulder high of about $52,200.<\/p>\n In the last decade, Bitcoin has undergone six large corrections, including the current one. Each time, the dip has been smaller than the last, for instance the 2021 version resulted in a 56% decline.<\/p>\n Market watchers should pay attention to $30,000, the point where the slide from the record high of nearly $69,000 would be equal in size to the previous correction.<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2022\/01\/Bitcoin1.jpg\")
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\nDeep Corrections<\/strong><\/p>\n