Bitcoin’s[1] price has taken a few dips since it hit an ATH of $58,330. However, what often gets forgotten is the fact that Bitcoin’s[2] price is up 72% year to date. With a press time price of $47,162, the cryptocurrency had dropped by nearly 5% in the last 24 hours. However, while this may be a pullback in the short-term, it’s not a setback in the long-term.
Here, it’s worth noting that the cryptocurrency’s price climbed to a local high of over $52,000 on 3 March 2021, and the press time price was a pullback from that level. In fact, such a pullback was registered by Ethereum as well, especially after BTC continued to trade below the psychological level of $50,000.
Now, the volatility of the crypto-asset suggests that it is gearing up for a rebound. Based on the attached chart, for instance, corresponding to the shift in position on derivatives exchanges, Bitcoin’s[4] price trend shifts too. Though positions on derivatives exchanges are conflicting, based on the volatility of the price, there may be price discovery above $50,000.
While the asset’s dominance has dropped from 68% to 60.7% and the press time price action may have deviated from its long-term price rally, the pullback in Bitcoin’s price is not a setback after all if recovery is in sight.
Konstantin Anissimov, Executive Director at CEX.IO, was one of those to chime in on the same. He noted,
“The jump above $52000 level yesterday, for the first time in a week showed that it is a retracement and selling pressure on Bitcoin has increased.”
Bitcoin’s[5] price succumbed to bearish sentiment, despite on-chain analysis signaling a bullish sentiment. The Fear and Greed index, another popular metric, was signaling extreme
