In the recent week, the price of bitcoin has been quite volatile. The price of bitcoin soared above $34,000 after rumors of bitcoin whales stockpiling the currency. Yesterday afternoon, it briefly broke $35,000 before falling back to trade in the $34,000 zone.
However, the coin’s price has dropped significantly in the last 24 hours. Bitcoin’s price has dropped by nearly $2,000 in a single day. This is around 6% of the price in the previous 24 hours. The price of bitcoin is now in the red, with the currency trading for around $32,525 at the time of writing this piece.
Price fluctuations over short periods of time are relatively uncommon for the coin. Alternatively, for the cryptocurrency market as a whole. This is a feature, not a flaw, of digital currency. As a result, investors anticipate such events on a regular basis. It comes with the territory of receiving large sums of money in a short period of time. However, this raises the question of what the present drop means.
Price Adjustment
When prices go excessively high in a short period of time, there is generally a price correction to bring the asset down to a level where it does not fluctuate too much. During bull markets, price corrections are a common occurrence.
This is related to the fact that prices move by significant margins on a daily basis in a bull market. In some cases, it just takes a few hours.
Is There A Bitcoin Bull Rally Coming?
Bitcoin, which is now trading at less than half of its all-time high, might be on the cusp of another breakthrough. Engulfing bull patterns demonstrate that at the end of a downturn, there is always a turnaround.
With the price now holding at $32,000, a loss of momentum at this level indicates that the downturn may be coming to an end. In the future, the conclusion of the decline will suggest a reversal signal for bitcoin.
The price, conservatively, appears to be ready to rise over the $35,000 mark once more. However, considering that the previous position point had just been breached, the following position point would be $5,000 higher. As a result, after the comeback, $40,000 may be the most plausible price target for bitcoin.
