“Technical indicators have been in the extreme overbought territory for too long. The rally started to “choke up” on the way to $20K. This is a very serious psychological and technical level of resistance for the market, and there was no doubt that this obstacle would test investors’ optimism,” the broker said in a statement.

At the time of writing, Bitcoin is down 11% and is selling for $16,800. Technical indicators, including the Fear and Greed Index and the RSI, which were overbought for a long time, performed well, as they did in June 2019 when the correction began.

“The rally started in the area at $10K up to the ceiling at $19.5K. The rollback to $16K is within the scope of the Fibonacci correction, but a rapid decline below that level will wipe out all the upward movement of October-November,” the message says.

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