Despite Plummeting Towards $7,000, Bitcoins Rally May Not Be Finished Just Yet

The crypto markets incurred a significant amount of selling pressure late-yesterday that sent them reeling downwards, surrendering a decent portion of the recent gains they have incurred as a result of the massive rally that has been taking place since early-April.

Despite the recent drop, some analysts believe that Bitcoins rally may not be done just yet, as a bout of coordinated selling may have sparked this temporary downwards movement.

Bitcoin (BTC) Plummets Towards $7,000

At the time of writing, Bitcoin is trading down 11% at its current price of $7,100, down significantly from its 24-hour highs of over $8,000.

Over a one-week period, Bitcoin is still up significantly from its lows of $6,300 but is down slightly from its highs of nearly $8,400 which were set this past Wednesday.

Although this latest move downwards has drastically shifted the markets sentiment for the worst, it is important for investors to keep in mind the fact that the latest pullback comes on the heels of a massive rally that put a significant amount of distance between Bitcoins current price and its 2018 lows of roughly $3,200.

As for what may have caused this latest pullback, Dovey Wan, a popular figure on Twitter and a founding partner at Primitive, explained that this recent drop was sparked by a large sell order of 5,000 BTC on Bitstamp, which may have sparked the downtrend.

This is what happened: 1. A jackass put up an aggregated sell of 5000 $BTC on stamp. 2. Stamp poor depth + algo glitch? 3. Bmx index is 50% on stamp. 4. Massive Bmx liq tanked the mkt. 5. Despite all BTC quickly bounced back to $7000 This might be the best chance to BTFMD, Wan said, bullishly concluding that now may be the time to buy the dip.

Analyst: BTC Must Break Back Above 4-hour RSI and Candle Resistances to Continue Surging

Although it is unclear as to whether or not the current drawback is over or if further losses are imminent, it is important that Bitcoin breaks above newly formed resistance levels in order for it to continue surging upwards.

The Cryptomist, a popular cryptocurrency analyst on Twitter, spoke about Bitcoins important resistance levels in a recent tweet, noting that BTC is likely to test both its 4 hour RSI resistance and its recently formed candle resistance in the next few days, which will give traders greater insight into whether or not BTC will be able to continue surging higher in the near-future.

After a week of warning about the RSI support, we finally broke it. CME gap also filled. I am watching to see how we react upon the RED RSI support line. 4hr RSI & candle resistances that led to this drop need to be broken for bullish momentum. Should test in next few days, she said.

As the week wraps up and the weekend trading session kicks off, the magnitude and long-term importance of Bitcoins latest pullback will likely grow much clearer.

Featured image from Shutterstock.

The post Despite Plummeting Towards $7,000, Bitcoins Rally May Not Be Finished Just Yet appeared first on NewsBTC.

17.05.2019 / 17:30 75
Despite Bullish Momentum, It May Be Another 18 Months Before Bitcoin Climbs Back to Its All-Time-Highs Despite Bullish Momentum, It May Be
Despite a bout of sideways trading in the crypto markets, Bitcoin has continued to extend its upwards momentum that was first established in
Will Altcoins Continue to Decouple from Bitcoin as Short-Term Bullish Trend Continues? Will Altcoins Continue to Decouple from
Bitcoin has been able to find some relative levels of stability in the upper-$5,000 region and has settled slightly lower today as it drifts towards
Bulls Beware: Maximum Pain Scenario Could Push Bitcoins Price Lower in Coming Days Bulls Beware: Maximum Pain Scenario
The crypto markets have incurred overwhelmingly bullish price action over the past several weeks that appears to have confirmed many analysts belief
Crypto Markets Shed Nearly 20 Billion as Bitcoin and Major Altcoins Plunge Crypto Markets Shed Nearly 20 Billion
The crypto markets have followed Bitcoins lead and spiraled downwards over the past day, with many major altcoins facing significant levels of
Crypto Markets Trade Flat Following Christmas Eve Dump Crypto Markets Trade Flat Following
Earlier this week, the crypto markets rose slightly and were able to regain much of their recent losses. This relatively small pump got many
Bitcoin Drops Below $4,000, Approaches 2018 Lows Bitcoin Drops Below $4,000, Approaches
Following a weekend of choppy trading action, the cryptocurrency markets have established a fresh leg down, erasing most of their gains incurred
Comments (0)
Add a comment
Comment on