Bitcoin (BTC) price is on a downtrend as the broader digital currency ecosystem has taken a dramatic and bearish turn. Bitcoin is down 5.09% at the time of writing, a slump that comes despite the obvious bullish fundamentals that surround the market at this time.
Bitcoin (BTC) Price Slump: Opportunity in Disguise
Bitcoin is fast losing its gains with price pegged at $35,774.80, breaching the $36,000 support zone for the second time this week. Despite the negative impact this current price slump is poised to cause, this speedy downward spiral in Bitcoin (BTC) price is considered room to accumulate according to top market analyst, CrediBULL Crypto.
Based on his previous analyses, CrediBULL Crypto has always projected an imminent retest of the local bottom at the $34,600 level. While the downward spiral has not touched this level yet, the underlying thesis behind the forecast has been validated with the current outlook.
According to the analyst, most of the profit-taking is systemic and can be traced back to the long positions that have built up extensively in the past few days. He revealed in a video analysis that with short sellers squeezed out of the market, a logical pullback is imminent.
Data from CoinGlass lends credence to this thesis as a total of $217.79 million has been liquidated from the market in the past 24 hours from over 77,200 traders. Bitcoin’s liquidation figures within this time come in at $61.42 million comprising mostly of long traders.
This downtrend in Bitcoin (BTC) price is not permanent as CrediBULL Crypto believes now is the time for Bitcoin price to “bounce.”
Altcoins Get in the Mix
Altcoins did not fare better in the grand scheme of things as Ethereum (ETH) dropped as low as 4.2% to $1,962.13 overnight. The contagion is quite strong seeing Ethereum rallied earlier in the day following the news of the BlackRock iShares Ethereum Trust application with the United States Securities and Exchange Commission (SEC).
The drop in altcoin prices is reflective of how strongly dependent most altcoins are on Bitcoin (BTC) price. Solana (SOL) 6.89% to $61.61, Cardano (ADA) has dropped 1.73% to $0.3703, and XRP has pared off its earlier gains with a 4.65% drop to $0.6177.
One good news is that any future recovery in Bitcoin price will also likely stir an encompassing altcoin recovery, a trend the market can bank on.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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