Bitcoin price has pulled lower, a move that has been attributed to traders taking profits after a meteoric rise in recent weeks. A spike to one-year highs of $14,000 had initially elicited suggestions that the crypto was on its way to new all-time highs. However, that was not to be, as a 30% pullback has triggered a slide below the $10,000 mark.
Bitcoin 30% Pullback
The steep pullback may well be the result of a trader placing a sizeable short order of 20,000 BTC on Bitfinex exchange. The short trade saw the trader bet more than $200 million that Bitcoin price would go down. The large short order appears to have triggered panic among retail traders, consequently fueling a sell-off wave.
According to John Todaro, the pullback was more than expected, as Bitcoin price needed a breather after a 300% plus spike in recent months. Sharing similar sentiments is BitBull Capital CEO Joe DiPasquale, who maintains pullbacks are healthy as they prevent the possibilities of unreasonable climbs.
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The fact that not all cryptocurrencies came tumbling as Bitcoin pulled lower is positive for the broader sector. The likes of Litecoin (LTC), Ethereum (ETH), and Bitcoin Cash (BCH) have only fallen by an average of 7%. Other altcoins retaining their upside swings could as well indicate that traders are not moving their money away from crypto to fiat, as was the case last year.
At the time of writing, Bitcoin is trading at $9,896, down 6.50%.
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Bitcoin Still Bullish
The 30% pullback could also have triggered a buying opportunity, going by Bitcoin’s recent trading pattern. In May, the flagship cryptocurrency experienced a 26% pullback followed by weeks of consolidation before it commenced the current leg higher.
The correction could trigger a buying spree, as Bitcoin appears to be trading at a discount given the strength of the upward momentum and long-term prospects. Bitcoin price is likely to continue powering high as cryptocurrency sentiments have improved a great deal in 2019.
The likes of Facebook and JPMorgan launching their own cryptocurrencies have all but added a layer of credibility to digital assets, consequently fueling an upswing in the crypto market. Fidelity, Bakkt, and Ameritrade have started tests on their crypto futures, which is another catalyst likely to fuel further upside action.