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.
$BTC reacted on the previous consolidation level (around $3860).
It was due for a pullback and for now, as far as we stay above $3710, it’s ok.
Otherwise, $3500 should come quick.More data on the daily close which is coming soon. pic.twitter.com/A2T3xaGIkr
— The Crypto Monk ⛩ (@TheCryptoMonk) 27 februari 2019
