Analysts on the latest downturns: Bull market not over for bitcoin

Analysts on the latest downturns: Bull market not over for bitcoin.

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Christian Ploog

christian.ploog@trijo.co

Despite the fact that the bitcoin price has fallen sharply in recent days, this does not mean that the recent boom is over. This according to a crypto analyst.

On February 24, the bitcoin price fell sharply. In a short period of time, the price dropped by over ten percent – from $4,150 to the region around $3,500. In fact, during just one day, $15 billion was wiped out in the crypto markets.

According to CCN, many traders were not prepared for the sudden downturn. Now, the Twitter profile “The Crypto Monk”, a technical analyst for cryptocurrencies, tells the news site that the sudden downturn for bitcoin was simply a “technical movement”.

This is why the price dropped

According to the analyst, the bitcoin price has not managed to break out of the low range between $3,190 and $4,250 in over three months.

When the price soared above $4,000, it absorbed most of the buy orders that were around those levels, which also meant that the rally could not continue upwards.

“Combined with multiple factors: decreasing buying pressure, long positions meeting their targets, and thus getting closed and short positions reopened as a switch”, says the analyst and continues:

“We get exactly what happened on Sunday. A brutal pullback. It doesn’t mean that the bullish momentum is over since important supports are still valid. $3,710 has been holding pretty well and we got an instant bounce reaction from this level”, says “The Crypto Monk” to CCN.

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