Bitcoin Price Mirrors March 2020 Levels
The bitcoin price is experiencing an extreme drain-out in the past couple of weeks, diminishing its value at a greater pace. No doubt the price attempts to recover above $40,000, the following rejection drags the price below $35,000 each time.
The price rally maintained a continued uptrend, however, many dumps with huge pullbacks were also a part of the rally. Yet, the most recent crash raised many eyebrows as the levels lowered to that of the March 2020 crash.
BTC price, during any dumps since the previous crash in March 2020, had never slided below the average levels. Yet the recent crash compelled the trend in the oversold region, also when tried to surge above, gets rejected.
This may be a little scary as the traders who were more interested to buy more BTC when the price was above $55K, appear to have lost interest when price is almost half of it. However, many other events occurred, yet point towards a massive rebound.
Also Read: Is Bitcoin Price In An Accumulation Phase Or Initiated With Redistribution?
Battle Ground Between The Bulls And The Bears!
The target for the BTC price by the end of 2021, yet remains unaltered by many despite the current trend. The strong consolidation or a sideway trend for a long time, in many cases has resulted in a huge leg up, with a pretty border margin. Hence this keeps the target levels for the price at $100K intact.
In an interesting market trend, only the short term holders are selling, where-as the miners and long-term holders continue to HODL. As per an on-chain market analysis platform Glassnode, a battle ground between the bulls and the bears has intensified due to the diversified supply trends in the market.
On the other hand, 76.7% of BTC supply is illiquid meaning, safe in strong hands. And this trend is increasing over time with a swelling base for new traders. Therefore increasing the demand on the network over time.
Overall, no doubt the current trend of bitcoin price might haunt the traders, yet the other indicators point out towards a healthy BTC price rally.