Bitcoin (BTC) has had a tough time for almost the entirety of the month of July after having gone through a highly impressive bull run during the first half of the year. As everyone knows, the $10,000 mark has become an important psychological point for the market now, and if the price of the token drops below that level, then there is usually a bit of panic in the market.
In a new development, the price of Bitcoin dropped below that level today, leading to fresh fears about the level at which the bottom lies in these uncertain times.
However, a well known Bitcoin analyst and author on the popular price action analysis website TradingView, Jacob Canfield, stated that despite the drop, there is not a lot to worry about. He has stated that the cryptocurrency is still in the middle of a bull run, and despite the drop, bullish bias still exists. The analyst stated that the recent price action in Bitcoin that has ensued from Saturday, when the token was trading at $11,000, is the classic of a bull trap. When that happens, traders in an asset react on an erroneous buy signal and then end up making losses on their positions.
At the time of writing, Bitcoin is trading lower by 3% at $9,928.
According to Canfield, despite the drop to levels below $10,000, there was considerable demand for Bitcoin even at those lower levels, and hence, he believes that that the cryptocurrency is going to make a turnaround pretty soon. However, Canfield has also gone on to state that there could be some pain before the turnaround really begins. He believes that the current bearish trends could see the token go below $9,800 and then to levels lower than $8,200 before the reversal begins. However, he is adamant that the demand for the token is still strong, and it is perhaps only a matter of time before Bitcoin breaks out again after going through a bit of a downturn.
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