Bitcoin’s price has fallen in the last two days, but will it continue?
After a solid run of healthy gains, Bitcoin’s price has fallen again.
On Tuesday, the value of Bitcoin managed to recover to around the $12,000 mark.
But, in the last couple of days, it has shed its recent gains to fall back to around the $10,000 point.
The price currently sits at $10,136 and is seemingly dropping due to huge sell-offs of Bitcoin and other cryptocurrencies.
The cryptocurrency market is extremely volatile and the value of BTC can go up or down by $1000 in a matter of hours.
Usually, large fluctuations can be attributed to an event or negative press.
In this case, however, all the news regarding cryptos is mostly positive.
What’s causing the price of Bitcoin to drop?
According to crypto market expert Omkar Godbole, the price drop may be merely a retreat before price continues to climb again.
Bitcoin made an impressive run from its February 6 low of just $6,000, all the way back up to around $12,000.
The sudden pullback from recent highs could just be a sign that it needs to catch its breath before continuing to rise.
If the price falls to rise back up soon, it will indicate that it will sit in between $9,000 and $11,000 for the time being as the recent rally has run out of steam.
According to Godbole, however, a daily close above $11,228 would mean the rally from the recent lows below $6,000 has resumed.
In such a scenario, attention would then shift to the next price target of $14,537.
Positive news in the press
Recent negative news in the press had helped push cryptocurrency prices down across the board.
Government regulators in South Korea had spread fear with investors with threats a crackdown on the crypto industry.
Those fears have since subsided though and faith has been restored in the market.
South Korean regulators even announced this week that they are now encouraging banks to work with cryptocurrency exchanges.