Bitcoin price recent drop wasn’t entirely bearish and here’s why
Bitcoin price has experienced a strong decline over the past two days, falling from the high of $ 11,200 it traded just a few days ago to a recent low of around $ 10,200 on Coinbase. At press time, Bitcoin is currently trading for $ 10,471, having risen slightly in tandem with other older markets.
Despite uncertainity about Bitcoin price action in the near term, the long-term chart is bullish
Bitcoin price has undergone a strong drop over the past 24 hours due to weakness in legacy markets. From last week’s highs, the coin has shed around $1,000, falling from the highs at $11,200 to a local low at $10,200.
With Bitcoin bouncing from those lows, analysts are actually somewhat optimistic about BTC’s prospects.
Crypto trader HornHairs shared the below chart on September 21st in the wake of the drop. He stated that due to Bitcoin’s rapid recovery from the local lows, it can be said that the drop was actually just a bullish retest of the crucial horizontal zone in the vicinity of $10,000.
He stated:
“$BTC – nothing but a bullish retest for now. Bulls want to reclaim $11.2k. Bears want to see a price below $10.2k. Bought dips across the board in anticipation of at least a bounce.”
This came after a number of other commentators noted that Bitcoin’s recent drop actually formed a higher low on a medium-term time frame. This higher low suggests that an uptrend may be forming, not a downtrend as some investors have explained.
There are signs that the bear trend could soon reverse to the upside. Crypto fund manager and analyst Mohit Sorout shared the chart below after the drop as reported by Bitcoinist previously. The chart shows that a key trend indicator that last flashed a buy signal prior to Bitcoin’s $2,500 rally around six weeks ago has returned.
Also corroborating the expectations of a return higher are fundamental trends such as the continued injection of stimulus and simultaneous accumulation of BTC that will likely drive prices higher over time.
Read more:
- FED’s Press Conference About The Next Stimulus Package Can Leave Bitcoin Price More Bullish In The Short-Term
- How Bitcoin Price Fares In The Near Term Seem To Currently Be Up In The Air And Somewhat Dependent On Legacy Markets