Bitcoin has started Monday off trading up slightly after experiencing increased levels of volatility over this past weekend. BTC has so far respected $3,800 as a level of support, but also faces strong resistance around $4,200, which is the price point at which the cryptocurrency\u2019s price dropped after touching.<\/p>\n
Although this recent volatility was unexpected, analysts seem to agree that it is part of a natural price cycle<\/a>, and not overwhelmingly bearish, as BTC has still incurred decent gains over the past month.<\/p>\n At the time of writing, Bitcoin<\/a> is trading up nearly 2% at its current price of $3,900. This past Saturday, BTC garnered an influx of buying pressure that sent its price to highs of $4,200, which proved to be a strong level of resistance and sent its price spiraling down to lows of $3,800.<\/p>\n Because the cryptocurrency has firmly established $3,800 as a level of support and $4,200 as a level of resistance, it is possible that this will be a new trading range in the near-future.<\/p>\n Mati Greenspan, the senior market analyst at eToro, spoke about the volatility the markets experienced this past weekend in an email, noting that there is a bright side to the recent pullback, as Bitcoin found support $300 above $3,500, where BTC has been trying to build support since earlier this month.<\/p>\n \u201cThe level of the pullback is actually quite encouraging. In fact, most of Sunday’s 9% plunge was actually just erasing some of Saturday’s gains. Ever since the spike on February 8th, the market has been trying to build support at $3,500. Yesterday we stalled a good $300 above that,\u201d Greenspan explained, further adding that \u201cIf January was a giant downward facing staircase, February has now turned into an upward one.\u201d<\/p><\/blockquote>\n Although Bitcoin\u2019s inability to hold support above $4,000 was slightly negative for traders and analysts who expected the markets to climb towards $5,000 in the near-future, it is important to note that the Sunday plunge came about after several weeks of relatively consistent price gains.<\/p>\n Alex Kr\u00fcger, a popular cryptocurrency analyst on Twitter, spoke about the Bitcoin\u2019s<\/a> latest drop in a recent tweet, explaining that it was a \u201csimple correction\u201d that was bound to occur after the markets saw multiple gains throughout the month of February.<\/p>\n \u201cToday’s crypto dump was a simple correction. Prices had just gone up vertically for 16 days without a pullback. Take $ETH for example: +38% without a pullback. Levered longs piled up. People FOMOed. $BTC reached the first strong resistance ($4200) and gravity kicked in.\u201d<\/p><\/blockquote>\n Today's crypto dump was a simple correction. Prices had just gone up vertically for 16 days without a pullback. Take $ETH<\/a> for example: +38% without a pullback. Levered longs piled up. People FOMOed. $BTC<\/a> reached the first strong resistance ($4200) and gravity kicked in.<\/p>\n — Alex Kr\u00fcger (@krugermacro) February 24, 2019<\/a><\/p><\/blockquote>\nBitcoin (BTC) Stable Above $3,800 After Plummeting from $4,200 Yesterday<\/strong><\/h2>\n
Analyst: Yesterday\u2019s Market Dump Was a \u201cSimple Correction\u201d<\/strong>\u00a0<\/strong><\/h2>\n
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