Bitcoin (BTC) Pulls Back To $4,800, Crypto Analysts Still Enthused
BTC Returns To $4,800, But Bulls Aren’t Done Yet
After a monumental 72 hours, Bitcoin (BTC) has slightly weakened. On Thursday, the asset fell from a $5,300 multi-month high to $4,800, as bulls failed to maintain the buying pressure. As of the time of writing this, BTC sits at $4,900, posting a 7% loss over the past 24 hours. Most altcoins are hurting a tad worse, posting daily losses in the double-digit percentages.
While this sudden reversal, which was likely a result of the overbought market conditions that Ethereum World News reported on previously, could see a continuation, many analysts are still decidedly buoyant.
Crypto Michael, in fact, calls this retrace “healthy,” likely touching on the fact that BTC holding above key resistance levels at $4,200 and $4,600 as the weekly close draws closer could be deemed entirely bullish. Michael adds that there is “no need to turn bear” on crypto’s prospects.
Others wrote that this pullback actually sets BTC up for a further rally, potentially allowing the asset to surmont the $5,300 price point established around 24 hours ago. Industry personality Jacob Canfield drew out a chart that predicted BTC consolidating at and around $4,700, prior to moving higher to its 350-day moving average and two key Fibonacci levels. If this move comes to fruition, Bitcoin could be trading at the $5,700 range in a few weeks’ time, Canfield’s chart depicts.
Josh Rager echoed this analysis to a tee. An advisor to both TokenBacon and Blackwave remarked that while BTC isn’t going to see $6,500+ (or fresh lows sub-$3,200 for that matter) anytime soon, he expects for the cryptocurrency to consolidate at $4,670. And if this level, which is Bitcoin’s 200-day moving average, holds, he expects for a bullish continuation, just like Canfield.
And overall, everyone seems to be more optimistic than otherwise. Fundstrat’s in-house crypto permabull, the illustrious Thomas Lee, reminded his tens of followers on Twitter that throughout BTC’s history, if you removed Bitcoin’s ten best days anually, BTC has been down year-over-year by 25% since 2013. In other words, a pullback is experienced in the cryptocurrency market doesn’t diminish the potential for another double-digit rally at all.
2/ Reminder that BTC generally generates all of its performance within 10D of any year. –ex the top 10 days, BTC is down 25% annually since 2013 pic.twitter.com/zoEocEEZvu
Fundamentals, too, have been overtly bullish. Binance Research, the data analytics branch of the world-renowned exchange, recently laid out four reasons why Bitcoin is looking rather strong, even stronger than ever.
Firstly, BTC’s move on April 2nd was the asset’s 12th biggest single-day gain in its history. Secondly, on-chain transactions per block is nearing an all-time high. While this is partially a result of Veriblock’s mainnet, this evidently shows that activity on the Bitcoin Network is still around, not gone entirely. Thirdly, on-chain pending transactions in the mempool are nearing late-2017 levels, only accentuating that Bitcoin’s transactional use-case is still pertinent. And lastly, Bitcoin’s mining difficulty and hashrate have recovered strongly off December 2018’s lows, a sign which some analysts, like PlanB, is a clear-cut sign of a bottom.