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.

Bitcoin price analysis

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.

Bitcoin price analysis

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.

Bitcoin price chart

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.