Today investors witnessed a mad crash that sent Bitcoin from the lower $10,000 region tumbling to lows of $9,200. Despite the shattering movement, it is important to note that it may not be as bearish as it seems, as its intense bounce from the lows within the drop seems to indicate that BTC will soon see a continuation of its medium-term uptrend.
Analysts are now noting that the crypto’s recovery from this lightning crash suggests that it will soon continue to climb further upwards as a top trader is expecting it to move back to its highs of around $10,500.
Bitcoin crashes during the market-wide flash crash
At the time of writing, Bitcoin is trading at $9,608, a sharp drop from the daily highs of $10,200. It should be noted that while today’s drop is clearly bearish, the BTC is still well above the level seen on Monday when it fell to $9,400 and the ability of buyers to defend the lower $9,000 region indicates some underlying strength.
HornHairs, a prominent crypto analyst on Twitter, spoke about this sellout in a recent tweet, stating that a daily close of over $9,485 indicates that Bitcoin will inevitably see an extension of the recent bull market.
“BTC macro update: Malicious market correction so far. Medium-term setback. Would like to close above $9485 today to maintain the low and bullish structure of the spread. In this case, it would still look good if the price continues to rise. Still 2 hours to go,”
he said, referring to the range shown below.
HornHairs also referred to some positive indicators in another tweet and stated that BTC is looking for a short term move to the highs at $10,500.
“BTC Lang: The medium-term prospects cannot be invalidated anywhere near here. I’m in the 2H closing after the sweep. I am aiming for 10.5 thousand dollars. Now or never”,
he explained, pointing to the diagram below.