If you have been following the bitcoin price closely over the last few days, you are aware that the BTC price has decreased considerably over the last two days. On Saturday morning, BTC investors woke up to a rude shock since the price had fallen from $6700 to $6000 marking a decline of about 11%.
As a result of this huge price decline, at least $20 Million worth of long position on Bitmex were liquidated. I am sure that millions more hit the dust on other exchanges as well.
Even though the price has since been able to rise to $6200 and that is where it is right now, there still is a strong possibility that the price will keep falling. Even with the selling pressure subsiding, traders are still afraid that the worst is yet to come. Specialists claim that BTC prices will keep declining in the coming days due to technical reasons. Just today more than three analysts have expressed an expected decline of BTC prospects.
According to one of them, this price action feels very familiar. The price action that has transpired since March 12th was witnessed earlier between Late-February and Early-March. During this period, BTC prices rallied higher only to get rejected at a horizontal resistance.
If BTC is going to follow this forming pattern to a T, don’t be surprised if it makes one more attempt at surmounting $7000 in the coming days and then fall dramatically even to $3800. BTC has moved below a key horizontal level and there is a possibility of the coin hitting a textbook markdown phase that will result in more short term losses.
At the same time, following the recent price action, some believe that the coin’s fundamentals remain anything but weak. There are those who even believe that the record influx of monetary and fiscal stimuli is an opportunity for BTC to prove the necessity for a disinflationary asset.
As you probably already know, cryptocurrency prices are highly volatile thus making their prediction quite difficult. The above opinions are based on the BTC price behavior.