Bitcoin price fell by a sharp 4% so far today as it dropped as low as $55,600, but now has recovered slightly
Bitcoin price fell by a sharp 4% so far today as it dropped as low as $55,600. The cryptocurrency had started the month with another attempt to breach the $60,000 benchmark level. Unfortunately, it was unable to overcome this resistance through the week as it set a range between $60,000 and $57,000.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price fell by a sharp 4% so far today as it dropped as low as $55,600
Resistance above $60,000 has proven once again too strong for bulls to break, and bears are now pushing the price per coin back down to retest support lower. Thus far, Bitcoin has held strong and the uptrend has been unaffected since far below $20,000
The full bull run began at prices much lower dating back more than one year ago. The leading cryptocurrency by market cap had a historic climb from below $4,000 on Black Thursday in March 2020 to more than $60,000 this past month.
However, the latest selloff has pierced through a trendline that’s supported the powerful uptrend since long below $20.000. It now all comes to what will be a crucial daily candle close. Volatility today leading into the close could pick up as bulls attempt to push back above the trendline, while bears aim to ensure confirmation of more downside ahead.
Bitcoin price has had several stronger corrections on daily timeframes. On weekly timeframes, there have been a handful of corrections, but have been weak compared to past bull runs. Monthly timeframes, however, have been nothing but green for the longest streak historically, which could indicate the first much larger correction in Bitcoin on the largest of timeframes.
And it all could be beginning with a daily close below this clearly important trendline, which has supported the entire uptrend in 2021 thus far. Regardless of any short-term correction, however, the bull market shouldn’t be finished. Data suggests that the currency cycle is only roughly one-quarter complete.
Elsewhere, today’s discount was also attributed to the kimchi premium. The 23% kimchi premium on the Bitcoin price witnessed earlier today has since started nosediving in tandem with the bitcoin price on the global market. According to a tweet by a Twitter user with the handle @lawmaster, the kimchi premium crashed from 23% to just around 9%.
— Larry Cermak (@lawmaster) April 7, 2021
While some observers have attributed the sudden decrease in the kimchi premium to the sharp correction in the price of BTC, others argue that the emergency suspension of deposits and withdrawals on the Upbit exchange is responsible for the crash. While the kimchi premium, which has gone as high as 600% in the past, presents an arbitrage opportunity to smart Korean traders, the government has however been trying hard to close this goldmine to no avail.
With the price continuing its downward slide, it remains to be seen whether the orange coin will still find a way to kiss $70k this season as predicted by the almighty kimchi premium.
You can see the BTC price here.
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