Bitcoin (BTC) is pulling lower after doubling in value following a massive surge from 2018 lows. The flagship cryptocurrency remains under immense bearish pressure after a 130% plus rally since the start of the year.
Bitcoin Price Analysis
A rally past the $8,000 mark had for the first time, in months, reinvigorated investor interest on cryptocurrencies, as it came after a harrowing plunge in 2018. A 14% plus drop has since taken the cryptocurrency back to the $7,700 level, waiting to see if short sellers have what it takes to continue piling pressure.
Given the magnitude of the drop, the cryptocurrency remains in a precarious position. Crypto investors and experts are of the opinion that the cryptocurrency could tank further should it fail to demonstrate a speedy recovery. A plunge to the $7,100–7,300 range could be in the future, according to the analysts.
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The recent drop does not come as a surprise, as many expected it. Some speculate that certain Bitcoin whales decided to cash in on 2019’s massive climb, dumping their BTC when they had the chance.
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Bitcoin Sell-Off Trigger
Reports indicate that the sudden Bitcoin sell-off may be due to a so-called Bitcoin whale offloading their holdings due to an influx in supply. It has since emerged that the Bitcoin whale moved as much as 25,000 Bitcoin, worth more than $200 million, from an exchange wallet into the Coinbase crypto exchange.
The transaction is believed to have earned the mover a cool $15 million, having sold their BTC for $215 million before buying back $200 million worth of Bitcoin after the price dropped. The massive sell order is one of the triggers that fueled the downward movement, which appears to have had a ripple effect in the broader cryptocurrency sector.
According to cryptocurrency analyst, Josh Rager, Bitcoin struggling to find support above the $7,000 mark could trigger a bigger pullback. Failure to bounce back and take out the $8,200 resistance level could also give short sellers a reason to continue pushing the price lower.