Bitcoin’s Drop Down to the Level Where the Fireworks Began in October would be a “Healthy Retrace”
- Bitcoin still below $8,000 at around $7,800
- A drop to $6,400 would be healthy for the market, says crypto trader and investor Bob Loukas
After the huge success of May that registered a whopping 60 percent gains approximately, we aren’t on a good start in June. Taking a hit from the new highs of 2019 at around $9,100, Bitcoin dropped down a good 10 percent, starting the month at $8,500.
Though the leading cryptocurrency surged above $8,800 level at one point this month, we went back below $8,000. On June 4th, we were at $7,700 before further taking another drop and going even below $7,400.
Since then, the flagship cryptocurrency has made some recovery but is still below $8,000. At the time of writing, BTC/USD has been trading at $7,768 with 24 hours loss of 1.11 percent. Meanwhile, it is managing the daily trading volume of $1.4 billion per Messari’s Real 10, 24 hours volume that is slightly below yesterday’s level.
A drop in BTC price has taken altcoins down as well that took the total market capitalization just below $250 billion. In the meantime, BTC dominance is at 55.6 percent.
In a Bull Trend, the Action is to Buy the Dip
Though the long term bull trend is still there that would take us to new highs, Bitcoin’s drop down below $7,400 has made the analysts bearish in the short term.
Crypto trader and investor Bob Loukas says in the long term, if Bitcoin sees a retrace to the crucial $6,400 level, it would be a healthy retrace for the market. This would mean the longer term trend is more sustainable.
As Loukas explains, if the upward trajectory would be followed that would mean a top and entering another bear market. So, a 40 percent retrade after a 180 percent rally from the yearly low would have us getting another triple digital rally.
This is the level, Loukas shares where the fireworks began in October 2018 that slowly led to a decline that fash crashed to $5,500 and then $3,750 in November 2018. From here, we hit the bottom of the market in December at $3,150.
In 2019, this level was breached on May 10th during the rally that started at the beginning of April. From late April’s $5,000 to $7,500 in the first two weeks of May has been the rally that wiped out the second half of 2018’s excruciating loses.
If Bitcoin goes back to this level that could take weeks, Loukas says it will only fill the gap back to the 10-week moving average. From here, he is hopeful that new 2019 highs might take the rest of the year.
“Just don't sell a long term position. In a bull trend the action is to buy the dip,” declared Loukas.
Bitcoin’s price is $47,779.88 BTC/USD exchange rate today. The real-time BTC market cap of $890.75 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $14.86 Billion and live coin value change of BTC -2.05 in the last 24 hours.