Bitcoin Price Drops 5% Ahead of Holiday Weekend
Since weekends often provide little liquidity, it also provides an opportunity for whales to cause extreme price movements in either direction once the order book is cleared out. Holidays also have this effect, and with Bitcoin breaking below $11,000 ahead of the Independence Day holiday weekend when many families are traveling and on vacation, the crypto asset is at high risk of being sent back down to retest lows for support.
- BTC has fallen more than $1,000 in the last 24 hours, establishing a bearish lower high at $12,061.
- A high-volume break above $12,061 is thus needed to revive the bullish view put forward by a bearish channel breakout seen in the 4-hour chart earlier this week. That would open the doors to $13,880.
- A move below Wednesday’s low of $10,830 would shift risk in favor of a drop to Tuesday’s low of $9,614.
Bitcoin has been said to be on its next bull run by most crypto analysts, however, some do suggest that a pullback and retest of former lows would not only be healthy for Bitcoin, but mandatory for the next bull market to be a long and prosperous one for investors of the emerging asset class.