On Saturday morning, the price of the leading cryptocurrency saw an extremely steep sell-off, with Bitcoin effectively falling off a cliff, shocking traders. The drop sent BTC to $9,700 from the daily high of $10,350, marking a drop of nearly 7% in a few hours’ time.
It was brutal, to say the least, with data indicating that around $100 million worth of BitMEX Bitcoin short positions were liquidated in this flash move lower, which has only recovered to $9,900.
Despite this critical drop, analysts remain optimistic about Bitcoin’s medium-term prospects, asserting that the pullback we saw today should be expected, for the price of assets or goods cannot continue higher forever.
Analysts Reassure Bitcoin Investors
After Bitcoin plunged by hundreds of dollars in a few hours’ time this morning, investors were running scared, making sweeping assertions like the “bull trend is over.”
But as pointed out by Michael Van de Poppe, a trader at the Amsterdam Stock Exchange and a prominent cryptocurrency analyst, the retracement that was seen Saturday is “still very healthy for this market,” adding that Bitcoin can fall to $9,500, as there is room for the asset to retrace to this key level.
The analyst continued by quipping that Saturday’s drop is not setting up Bitcoin for a drop to $3,000, before adding that “we’re still early” in reference to the sentiment that BTC is in the earliest stages of its next long-term bull trend that will take prices much higher than they were at the peak of the last cycle.
First of all: A retracement is still very healthy for this market, even if $ETH goes to $240 and $BTC to $9,500.
Filb Filb also reassured investors. Unlike Van de Poppe, the analyst opted to post a small tidbit of technical analysis to his Telegram channel, accentuating that the uptrend structure remains relatively intact, especially when you consider how Bitcoin has been trading over the past two months.
Filb wrote that there is a “reasonable case” that can be made that the recent drop is just another slight correction in the strong uptrend that remains intact, drawing attention to previous events over the past few weeks where Bitcoin dropped in hours or days to only continue to new local highs a week later.
Attached to this optimistic message was the below chart, which indicated that should history repeat itself or at least, the price of Bitcoin could rally to $11,500 by the start of March, which would mark a 17% rally from current price points.