Bitcoin fell 7% since Monday. Does this portend further downside? (Photo by Chesnot/Getty Images)
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Bitcoin prices suffered a retracement in the last few days, falling more than 7% from nearly $12,500 on Monday to less than $11,600 today on CoinDesk.
At this point, cryptocurrency traders might be wondering whether this latest drop is a sign the world’s most prominent digital currency is headed for further weakness.
Fortunately for bitcoin bulls, this does not seem to be the case, according to multiple analysts.
The digital asset has been following a general, upward trend since March, additional CoinDesk data shows, so this latest pullback was simply a break in that movement higher, several market observers claimed.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
“I think this is most likely a brief pause,” said Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet.
“We’re definitely in a bull market and the price will continue to reflect that.”
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, also chimed in, providing some technical analysis.
“The fact that $11.5K has proven sound and the 20MA is still in play means bulls are just taking a much needed break and the sentiment is likely to remain positive in the short and mid term,” he stated.
Key Resistance
Bitcoin could experience some very compelling gains should it break through the resistance zone that exists between $12,300 and $13,200, said Kiana Danial, CEO of Invest Diva.
“Monitoring this level is crucial,” she emphasized.
“Confirmation of a break above it would also confirm a double bottom bullish reversal chart pattern which could then take the Bitcoin price up to as high as $24K in the long-term.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.
