This week, Bitcoin suffered its worst weekly drop since May. The price was expected to remain above $ 12,000 after breaking this level earlier in the week. But despite the upward feeling, warning signs had been showing for weeks.
A quantitative risk indicator known to detect price changes had reached overbought levels on August 21, indicating that the asset was cautious despite this upward trend.
The warning signals were finally confirmed when a selling pressure hit the market earlier this week. “Miners have been carrying unusually large amounts of BTC since yesterday, extracting Bitcoin from their mining wallets and sending them to exchanges,” an analyst at CryptoQuant said. said.
The drop brought with it numerous downward predictions, focusing on BTC below $ 10,000 to close the CME shear around $ 9,750.
“Like $ 1,900 gold, $ 10,000 in Bitcoin is a good initial correction support level,” said Mike McGlone, Commodity Strategist at Bloomberg. Unless the stock market falls further, it should hold support for $ 10,000 of Bitcoin. If the falling stocks pull BTC below $ 10,000, I still expect it to eventually stand out like gold. ” said.
Despite more bearish potential, some analysts consider the drop to be healthy.
Rekt Capital, an anonymous analyst; “Bitcoin confirmed the macro bull market as soon as it broke the weekly trend line. However, I think price corrections in bull markets are a natural part of a healthy growth cycle and a requirement for the later price. Bitcoin will reach higher levels. ” said.
Also, “Bitcoin can retreat to $ 8,500 while maintaining macro bullish momentum.” said.
Finally, “When looking at these tests, it is necessary to take the Bitcoin halving into account. After each halving, the price consolidates into a ‘re-accumulation’ range before moving upward out of this range, but then moves back towards the top of the range for a ‘retest attempt’. The peak of the current halving range is about $ 9,700, which corresponds to the CME gap. ” said.
While technical analysis and open interest charts point to a healthy return, the quantitative indicator is not yet “clear”, that is, it fell to rising levels. Moreover, the macro environment seems far from certain. Therefore, if stocks continue to fall; BTC is likely to follow.
Given the numerous fundamental analyzes for Bitcoin, the bull market will likely continue even if the price drops below $ 10,000.