Bitcoin fell by $800 on Wednesday while still keeping a bullish mood. The biggest daily fall in three months trapped the bulls leaving investors anything but pleased.
The currency faced rejection near $10,300 during the US trading hours, which fell by $800 to near $9,300. Eventually, BTC faced the biggest single-day drop since November 21 with levels near $9,600.
In just 13 days, Bitcoin dropped more than 3 percent than in the last 4.5 months and five days. Its solid rally started from $6,850 to $10,500, which shows the market rising in bullish sentiment this year.
That said, the slump could only be referred to as a bull breather. Traders somewhat expected the short pullback with the golden crossover on the 50- and 200-day MAs signals on Tuesday.
Bitcoin recently rose back above $10,000 earlier this week, which showed possible relapses of recent highs at above $10,500. The prediction is a possible reason why buyers rejected the crypto.
Prices are still in the bullish zone with key support near $9,100.
The bullish structure maintained since January 1 is still intact in the daily chart. The slope will hold only if prices find acceptance under $9,075, which is a higher low established on February 4.
However, the recent drop increases the risk of a more bearish market. A big bearish candle activated twin price-negative cues with a new lower high at $10,300.
If the bulls push Bitcoin above the descending five-day MA at $9,800, it could break the sustained short-term average.
This break above Wednesday’s high of $10,300 could confirm a continued uptrend.
Bitcoin is trapped in a descending broadening channel in the 4-hour chart. A break below the neckline support at $9,575 could confirm a head-and-shoulders breakdown to strengthen a slide toward $9,000.
If prices defend the 200-candle average at $9,400, the selling pressure could allow a stronger leap.
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Bitcoin’s $10,000 record spread across the cryptocurrency market, lifting most altcoins up with it. Litecoin, as the 6th top cryptocurrencies by market cap, is preparing to make up losses from last week.
Market analyst RidethePig expects large inflows into the crypto, which helped account for remarkable price growth. It expects the altcoin price to outperform its rivals Ripple (XPR) and Ethereum (ETH) if Bitcoin continues its bullish momentum.
Furthermore, analyst Alex Clay suggested taking long positions for the bulls. LTC has been in a sell zone since it broke through $75 on February 18.
Litecoin also recently reached above $76, which Clay took as a bullish sign.
If Clay’s analysis is true, Litcoin could see a price target of around $80.40 before moving up to $84.49.
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