Bitcoin Declines Below $9k Price Level; Is a Bull Run Imminent?

News / 21.05.2020

Bitcoin has been consolidating directly beneath critical barrier over the past few weeks and could not surge above $10k price level. A few hours ago, it moved below $9k and traders are wondering whether the leading cryptocurrency will revisit the low levels attained during the crash in March or maybe it is a chance to purchase the dip prior to the real bull run.

It has been difficult for Bitcoin to clear the key resistance at $10k as it has proven quite rigid to break for the better part of the bear market. While the bear market may have come to an end after the halving, the current pullback could be a chance to purchase the dip.

The cryptocurrency market is still wallowing in uncertainty after the crash in March. There is fear and confusion due to the consequences of the COVID-19 pandemic. Despite the economic troubles, stocks and Bitcoin are still flourishing while investors understand that there could be another crash because markets are unpredictable.

Therefore, the noteworthy fact is that the current situation may lead to a panic drop due to aggressive cryptocurrency traders who could bend on selling their Bitcoin at a profit prior to the worst selloff.

Another possible factor contributing to the bearish pressure may be Bitcoin miners’ capitulation because of the increase in production costs from the halving event. More miners could drop off Bitcoin network if the price of Bitcoin declines further. If they drop off the network, there could be a crash to former lows close to $4k. Bitcoin will be supported at $8.2k, $7.5k, and $6.4k before it attains the low levels.

However, if Bitcoin is primed to incur a bull run, then the current dip is only an opportunity to buy the dip. Bitcoin has risen above $9k again in less than 15 minutes after its fall from $9.4k to below $9k. The largest cryptocurrency may not be able to hold that level for a long time. Currently is trading at $9009.

Source: Cryptopress.

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Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.