- Two weeks after seeing the cryptocurrency hit an ATH of $ 41,941 on the charts, the price of Bitcoin was corrected to drop to $ 34,000. With Bitcoin valued at $ 34,606 at the time of writing, it’s worth noting that this market cycle in this bullish season is largely two steps forward and one step back.
Two weeks after seeing the cryptocurrency hit an ATH of $ 41,941 on the charts, the price of Bitcoin was corrected to drop to $ 34,000. With Bitcoin valued at $ 34,606 at the time of writing, it’s worth noting that this market cycle in this bullish season is largely two steps forward and one step back.
What’s next? Critical here is the momentum in the network and the volatility of Bitcoin’s price rally. Think about this – Looking at the first one, it can be observed that the network momentum is relatively low compared to the 2018 level. And yet, the price of the cryptocurrency has reached a new ATH on the charts.
Bitcoin Network Momentum and Volatility || Source: Woobull Charts
The current momentum does not yet represent a bull market, and this is the driving factor behind the narrative of Bitcoin’s ATH above $ 40,000.
The most recent drop is the first one, and more can be expected as there were two major cycles in 2013 and more than two in 2017. The most recent drop in the price of the cryptocurrency could be the last time the price dropped below $ 35,000, especially the last 24-hour change in price was 2.33%, weekly gain 6.35%.
It can be argued that after a major movement and price discovery at previously undiscovered levels, the price drop is expected for more than three weeks. This may be the reason why so many of Crypto-Twitter call this a reactive move rather than a shock wave.
For Bitcoin, falling open positions are dangerous
In fact, @ScottMelker on Twitter called the latest price drop a classic sell setup. Also, other technical and in-chain analysts are expecting more retracements ahead of the next ATH rally and further price discoveries.
Interestingly, the most recent pullback helped set a new record in trading activity, even though it was a sharp drop.
Over 27,960 contracts changed hands in one day
Bitcoin volume exceeds $ 4 billion according to mutual transactions
In fact, although this explains the most recent price drop, traders are waiting for one more in case of further drop in Bitcoin open positions on derivatives exchanges.
As of the time of writing, there has been a drop from $ 10 billion to $ 9 billion, and a larger drop could point to another correction in Bitcoin’s price. Another possibility is that the trading volume in both the spot and derivatives exchanges will reach a low level. However, while the former appears likely, consistent demand from whales and institutions could indicate some recovery in the new ATH price level.