Saturday saw Bitcoin suddenly drop below the $10,000 price level. Specifically, the price of Bitcoin crashed by around $800 in a matter of mere minutes. As such, observers are commenting that this bearish move may have seen the Bitcoin price support at $10,000 struck down.
Drastic Bitcoin drop below $10,000 caused by massive sell-off?
This drastic market move saw the Bitcoin price crash from around $10,180 to $9,410. At the time of writing, the Bitcoin price has recovered slightly, and is currently trading at $9,511.
The following market chart, from COIN360, shows that the majority of the crypto market is in the red – despite Bitcoin’s slight rebound. Cryptocurrency commentators have struggled to pin down the absolute reason for this drop in the price of Bitcoin.
However, many have speculated that the reason for the drop is actually a massive sell-off. The market behavior which saw the price of Bitcoin fall so dramatically is reminiscent of a large-scale sell-off, which may suggest that some large actor initiated a massive Bitcoin liquidation.
It is unclear exactly what repercussions this fall in the price of Bitcoin will have. However, some crypto commentators have previously warned that a fall below $9,600 could be a gateway to lower price levels.
For example, the regular market commentator Josh Rager has said that $9,690 to $10,586 represents a ”neutral” price corridor for Bitcoin. However, Rager argues that any bullish or bearish movements occur outside this range.
Will Bitcoin fall further or recover?
As such, the current Bitcoin price of around $9,500 means that the Bitcoin price has stepped out of that neutral price corridor. Nevertheless, it then remains to see whether this bearish correction will continue.
On the other hand, several commentators have recently signaled that the price of Bitcoin may, instead, head towards even higher levels. For example, Toshi Times recently covered how data appears to suggest that Bitcoin might reach a price of $356,000 by 2021.
Although this seems like a massive price increase, it represents an extrapolation of the logarithmic price increase already seen by Bitcoin. Consequently, the upcoming market trend for Bitcoin is a bit murky.
Although some are suggesting that this recent price drop could be the beginning of a bearish downturn, others are – instead – forecasting future price increases for Bitcoin. Subsequently, one should likely wait for further market movements before making concrete price predictions.
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.