Will there be a Bitcoin correction?

After four weeks of rising Bitcoin prices, the largest digital coin is facing some pretty strong resistance around the $105,000 to $106,000 level, just below the All Time High of $109,000. Is this just a short break before we set a new record or are we due a correction?

Yearly peak

The largest digital currency fell along with the stock markets in early April after Donald Trump’s disastrous ‘liberation day’ announcement on April 2. Bitcoin dropped as low as $76,000, on some crypto trading platforms even as low as $74,000.

A week later and probably under pressure from investors and billionaires (who panicked after the US bond market also fell, meaning investors were choosing Europe and Asia over the US to park their money), Trump suddenly changed his mind and opted for a pause on his beloved import tariffs. That turned out to be the starting signal for a nice rally of around 30% for Bitcoin.

This resulted in a yearly peak of some $105,000 last week. However, this level appears to be full of sell orders, making it very difficult for investors to quickly cycle past it;

The support line around $98,000 will therefore probably be tested in the coming days. Geopolitical developments can negatively influence the price of Bitcoin in the short term.

Also note the declining dominance of Bitcoin against the smaller altcoins. After a short correction, this could signal the start of a new alt season.