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Bitcoin Plummets 23% From Daily Highs; Was $13,800 a Long-Term Top?

Avatar Cole Petersen 6 months ago

After incurring a massive influx of buying pressure that sent Bitcoin (BTC) to nearly $14,000 yesterday, the cryptocurrency has plummeted lower and is now struggling to find support in the upper-$10,000 region.

This massive volatility has led many investors to question whether or not $13,800 was a long-term top for BTC, but analysts are now noting that this could be the perfect time to increase exposure to the cryptocurrency, as it may continue its journey upwards in the near future.

Bitcoin Drops Into $10,000 Region as Selling Pressure Ramps Up

At the time of writing, Bitcoin is trading down nearly 20% at its current price of $10,715, down significantly from its recent highs of just below $14,000.

While zooming out and looking at Bitcoin’s short-term price action, it is clear that the cryptocurrency is still in a firm uptrend despite today’s drop, as it is up significantly from its one-month lows of $7,500.

While keeping this in mind, today’s drop seems rather insignificant, but it does certainly signal that the cryptocurrency is not ready to journey back up to its previously established all-time-highs, and further consolidation may be necessary before it once again breaks into the $20,000 region.

Trading Room, a popular cryptocurrency analyst on Twitter, recently noted that the lower-$10,000 region seems like a good place to increase one’s BTC holdings, with a short-term target of nearly $14,000.

“Adding #Bitcoin Longs in investment portfolio. 9750-10450 Zone. Targeting $13950. No stops for now, will re-assess if we close below 9500 in weekly candle. (Not suitable for Leverage Trading),” they explained in a recent tweet.

Analyst: This Dip Was Inevitable, and May Allow BTC to Fill Previously Formed CME Gaps

Bitcoin’s recent upwards surge has led the cryptocurrency to form multiple gaps in the CME Futures charts, which are typically filled at some point close to the time of their formation.

Josh Rager, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting that the latest dip wasn’t entirely unexpected, and may allow Bitcoin to fill its CME gaps before it resumes its upwards surge.

“$BTC – Most talk about ‘buy the dip’ but then panic when price moves down. This the a big dip we’ve all been waiting for, don’t be scared, formulate a plan. Maybe we’ll see the CME gap get filled at $10k, I don’t think it drops to the $8400 gap. Alt season on hold for now,” Rager explained while referencing the below chart.

As the week wraps up and Bitcoin continues to react to its precarious position within the upper-$10,000 region, it will likely soon grow clearer as to whether or not $13,800 is a local top, or if it will soon continue on past that price point.

Featured image from Shutterstock.
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