The world’s largest cryptocurrency endured a sharp drop in the past 48 hours after a strong rally that previously took it beyond $12K.
BTC is currently changing hands at $10,409 after its drastic $2,000 correction that saw it momentarily touch lows of $9,990 on Friday morning.
To comprehend this latest price movement, you have to note that BTC is in an intense selloff as miners dump vast amounts of coins into the market.
This selloff is causing a drop that reminds many of the Mid-March Black Thursday Crash. Crypto trader Byzantine General shared the chart below, highlighting that BTC is massively oversold.
Traders are now closely watching the $10.5K zone that has acted as strong macro support in recent months. A successful weekly close above this level could enable bulls to reclaim the crucial $11,000 support.
Key Reasons Why BTC Price could soon Surge
Despite the drop depicted in the BTCUSD chart below, some analysts and traders remain optimistic that the asset will rebound.
BTCUSD Price chart by TradingView
For instance, Wall Street veteran Raoul Pal explained via a tweet that BTC tends to correct after rewards halving events; the occurrence often misguides short term traders.
“In the post-Halving bull cycles, bitcoin can often correct 25% (even 40% + in 2017), throwing off the short-term traders,” Pal explained. He also noted that the BTC price movement is an excellent opportunity to buy the dip.
Rick Rule, the CEO of Sprott U.S. Holdings, is also bullish on BTC. He pointed to the low-interest rates in the global market, explaining that gold is poised to move higher due to rising inflation.
The CEO concluded that any surge in the precious metal value should translate to BTC’s price since gold historically correlates with the king coin.
As we reported, many investors now view BTC as digital gold and expect the coin to mature and compete with gold as an established store of value.
ETH Price Breaks the $400 Support Level
The second-largest digital asset also saw significant losses today as it nosedived to break below the support near $400. The ETH price even traded below $385 as the bears took charge of the market. At the time of this article’s writing, the popular altcoin is down 4.65 % at its current price of $383.7.
ETH price chart by TradingView
The ETHUSD pair could see a slight uptick in the near term, but sellers are likely to remain active in the $400 zone.