Bitcoin’s price has not followed through with its upward movement and has fallen back to last week’s positions. What are the reasons for this significant drop?
Signs of a Downward Trend
The power of the drop that has happened is tied to the scale of the trend. Bitcoin’s price was at a key medium-term level, as was said earlier. The volume of trading at such points is usually much higher than when only short-term deals are involved. That’s why the price underwent such a sharp fall.
Because the upward trend was broken and Bitcoin’s price fell back to the medium-term level of $406, there is now a probability of a downward trend developing. But for it to form, the Bears will have to hold their positions at the current level. In case a turn forms, the price is quite likely to reach $390.
Within the short-term trend, the most likely level for a turnabout is $416. After fortifying and forming a turn, the next target for the price will be at around $420-22, a likely level for another break of the trend.
The future fate of the downward trend depends on whether the bears will be able to hold at the level of $420. If the advantage goes to the Bulls, a turn to growth is likely to happen at that point; but until then, the price will undergo a downward movement.
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