Bitcoin’s Recent Drop Wasn’t Entirely Bearish: Here’s Why
Bitcoin 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.
One chartist 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 elaborated:
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.
Chart of BTC's price action over the past year and so with analysis by crypto trader HornHairs (@Cryptohornhairs on Twitter). Chart from TradingView.com
Bear Trend Could Soon Reverse
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.
Chart of BTC's price action over the past few weeks with analysis by crypto trader and fund manager Mohit Sorout (@Singhsoro on Twitter). Chart from TradingView.com
Also corrobrating 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.
Featurd Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Here's Why Bitcoin's Recent $1,000 Drawdown Isn't Entirely Bearish
Originally from Bitcoinist.com https://ift.tt/2FYBQoo
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