It seems like BTC has reached an overbought position, and the time for correction has come. We are witnessing Bitcoin going down for the past three days, which affects all other altcoins. If you check some of the famous indicators, including the Bollinger Band, RSI, and MACD, all of them are giving strong selling signals.

Now, the question arises: how low will Bitcoin drop, and how much will it take down all other altcoins? It is absolute that all other coins follow the BTC pattern. If Bitcoin moves downside, all other coins follow the pattern, but with more volatility.

Bitcoin's Correction How Low Will It Go.png

One thing to keep in mind is that for a healthy market, correction is far necessary. This is no doubt a clear correction, and this time, it may be for a longer period. We did see that many coins, including #hive, dropped by more than 40% in just three days.

Now, the question arises: how low will Bitcoin drop, and how much will it take down all other altcoins?

Yup, that is a nice question, and many crypto users are looking for the answer. Predictions exist, but there is no surety that any prediction will come true.

I will also share my analysis based on my experience in this market, which spans more than seven years. We have two major support levels for Bitcoin, and it is possible that #Bitcoin will test those levels. The first level is $88-89K, which is a good support level. If Bitcoin holds from here, you can consider investing at this level. In the other case, breaking down the support level will take the price down to $80K.

The second support level is $80K, and there is also a fair value gap there that is possible to test. If Bitcoin reaches $80K, all other altcoins will bleed by 60%. That will be the best time for Bitcoin to bounce again, and also, altcoins will see a good gain.

Looking at this scenario, one thing confirms that Bitcoin can go down to $80K, and investors should be prepared for that level. If you have investments in your coins, you need to hold them because the bull run is not over. You can also consider doing DCA (dollar-cost averaging) buying, which will lower down your buying average.

Bitcoin's Correction How Low Will It Go (1).png

If I talk about my strategy, I will buy 50% of the amount at the level of $89K and the rest 50% at $80K. These are the two strong support levels, and more probably, the market will rebound from this level. This time, I am choosing low market cap coins that have more potential to rise in this bull run. They have the potential to go even 20-30X in this bull run and in a very quick time.

You need to spend some time finding low-cap coins that are fundamentally strong and also holding good projects. According to my guess, Bitcoin will keep coming down until the start of January. The market will quickly react on January 20th, which is a special day for Americans. Donald Trump will officially join the presidential seat and will surely be in favor of crypto.

My final words: don't invest all of your money at once in this market. Rather, divide your amount into two portions. I have discussed the levels; if you do it, you will surely book good profit in this bull run. Please note that this is not financial advice.

I hope you find this post interesting and I hope you will like it. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.