On Tuesday, Bitcoin took a bit of a tumble, dropping 6% from $63,000 to almost $59,000. The drop follows a pattern known as the Bart Simpson pattern—yes, it’s named after the spiky-haired cartoon character because of how the chart looks. So, what caused this sudden dip? Honestly, it’s a bit of a mystery.
Traditional financial markets didn’t give us any clues, as they ended the day with only minor gains. There wasn’t any major economic news that would have triggered a crash, the U.S. dollar didn’t shoot up, and bond yields stayed pretty steady. So, it’s not entirely clear why Bitcoin decided to take a dive on the day.
https://twitter.com/CrypNuevo/status/1828213680103715108
But before you start worrying too much, let’s take a look at what some experts are saying. Rekt Capital, a well-known name in the crypto world, has a straightforward take on this. According to a post shared on Elon Musk’s X, Bitcoin is likely to drop just enough to make you think the bull market is over, only to then resume its upward trend.
Bitcoin will retrace deep enough to convince you that the Bull Market is over
And then it will resume its uptrend$BTC #BTC #Bitcoin
— Rekt Capital (@rektcapital) August 27, 2024
Many traders now see $50,000 as a key support level for Bitcoin. If we drop below that, things could get a bit awkward. But right now, we’re still comfortably above that line, with Bitcoin trading just below $60,000. Yes, trading is volatile, but talking about a drop to $50,000 is as far-fetched as speculating about a surge to $70,000 at this point.
Analyst Matthew Hyland also chimed in, noting that Bitcoin’s structure can stay intact as long as a lower low isn’t created. He pointed out that there’s still plenty of support to prevent Bitcoin from falling much further.
#BTC structure can stay intact as long as a lower low is not created pic.twitter.com/lHrDx2Vnm6
— Matthew Hyland (@MatthewHyland_) August 27, 2024
So, while the drop might have been a bit of a shock for some, there’s no need to panic just yet. Bitcoin has a way of bouncing back, and the experts seem to agree that we’re not in dangerous territory—at least not yet.
At the time of writing, Bitcoin is trading at $59,212 according to CoinMarketCap data.
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