The price of Bitcoin has experienced some falls since it hit a record high of $ 58.330. However, what is often forgotten is the fact that the price of Bitcoin has risen by 72% since the beginning of the year.
With a price at press time of $ 47.162, the cryptocurrency has fallen by almost 5% in the past 24 hours. However, while this may be a short-term pullback, it's not a long-term setback.
It has made many investors happy since the beginning of the year
It is therefore worth pointing out, that the price of the cryptocurrency rose to a local high of over $ 52.000 on March 3, 2021 and the price at press time was a pullback from that level. Indeed, such a pull was also recorded by Ethereum, especially after BTC continued to trade below the psychological level of $ 50.000.
Now, the volatility of the crypto asset suggests it is preparing for a rebound. Based on the quotation in real time and relative graph, for example, corresponding to the shift in position on derivatives exchanges, the trend in Bitcoin prices also changes. Although positions on derivatives exchanges conflict, based on price volatility, there may be a price discovery in excess of $ 50.000.
While the asset's dominance has dropped from 68% to 60,7% and the price action at press time may have deviated from its long-term price rally, the Bitcoin price pullback is no joke. stop, after all, if recovery is in sight.
What does the executive director of CEX.IO think
Konstantin Anissimov, executive director of CEX.IO, was one of those to speak on the subject, noting that: “The jump above the $ 52000 level a couple of days ago, for the first time in a week , showed that it is a retracement and the selling pressure on Bitcoin has increased ”.
Bitcoin price has succumbed to bearish sentiment, despite blockchain analysis signaling bullish sentiment. The Fear and Greed Index, another popular metric, was signaling extreme greed, at the time of writing. For most traders, this means there is a correction around the corner.
However, for so-called “contrarians,” there is a wait time between the price retracement and the signal, so the price may rise further before a decline. The price retracement does not appear to have deterred whales and HODLers in the long run, as the volume of Bitcoin held in whale wallets with over 1000 BTC has also increased. This benefits retail traders by providing the opportunity to buy local decline and post profits at the local high.
Ergo, while the asset price is unlikely to drop to pre-2021 levels, a further drop from the price level at press time could offer entry points for new traders.