The big news of the day has been Bitcoin’s surge past $10,000. Now, however, Bitcoin has fallen back below the $10,000 line in a massive flash sale. However, analysts argue that this sudden price crash could actually be yet another bullish sign.
Bitcoin falls back below $10,000 in flash sell-off
As anyone keeping an eye on the crypto markets will know, Bitcoin was approaching $10,000 for almost all of 2020. As such, the news on February 9th that the premier cryptocurrency finally broke past $10,000 made a big splash.
However, as Toshi Times yesterday said could likely be the case, Bitcoin has since then fallen back below $10,000. Notably, this price fall took place during an extremely short period of time. In fact, 4% of Bitcoin’s total value was lost in roughly twenty minutes.
What’s more, the price of the premier crypto fell from more than $10,100 to approximately $9,700. This was the result of rapid sales, which fill a gap in the Chicago Mercantile Exchange’s (CME’s) Bitcoin futures market.
Some suggest this market consolidation is actually bullish
In fact, news reports suggest that filling the CME gap through a flash sell-off is actually a bullish sign. Other analysts agree that although the sell-off did stunt Bitcoin’s price performance, their attitude remains bullish on the crypto.
Ever since the sudden fall of Bitcoin’s market price, the premier crypto is once again gathering momentum. At the time of writing, Bitcoin is trading at a price point of $9,827. As such, Bitcoin appears to be on track for a return towards $10,000.
Nevertheless, this price milestone carries psychological implications, and it is subsequently hard to predict the short-term performance of Bitcoin.
Bitcoin retains substantial market support
With that said, traders should not panic. As the well-known cryptocurrency trader Parabolic Thies points out, this short-term drop did not come out of nowhere. Moreover, he also highlights that the current price of Bitcoin has significant market support:
“$BTC dropping from $10.2k – $9.8k as of now. This is expected. No need to start worrying unless support at $8.8k is breached.”
In addition to this, Teddy Cleps, a market analyst at Crypto Freak Network, also cites Bitcoin’s substantial price support. According to Cleps, traders do not have to worry as long as Bitcoin stays above $9,150.
“Technically the structure’s bias is bullish as long as price doesn’t lose $9,150. Price has a decent margin to retrace and mark another higher high, and thus continue its growth.“
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.