By Alicia Maher
For all of Bitcoin’s qualities as the first cryptocurrency to ever be used for transactions, it has one inherent feature that everyone in the crypto industry is aware of, that is price volatility.
Volatility remains one of the periodic trends associated with Bitcoin, which is capable of suddenly changing the disposition of investors toward the token. However, investors have different experiences with the price changes of the BTC.
For some, any downward price movement will signal a period of massive accumulation and expansion of their BTC portfolio. In contrast, others see it as a period where they incur huge losses whenever there is a dip.
The flagship cryptocurrency has been in a downward trend for some time now as it currently dips further down below $39,000 just days after hitting the $40,000 price mark. Although many observers had expected the BTC to embark on a bullish rally, the past couple of days proved a different situation.
As a result, Bitcoin is gradually taking a downtrend movement toward the $37 – $40k price range. And the recent dip presents the whales with an opportunity to make a large accumulation of the BTC tokens.
The Bitcoin Price Pattern Explained
According to a crypto technical analyst, Minkyu Woo, the $30-$40k price range signifies when the BTC price is in an accumulation phase, and the move began last month. The analyst further encourages investors to keep hold of their assets or buy more of the dip if and where possible.
Previously, there have been reported situations of rising outflow volume where many BTC tokens have been moved using exchanges. However, the trend was reversed when the price of cryptocurrencies went up and the market recovery set in.
A similar pattern has been found to have appeared again as Bitcoin rebounded from the losses, which saw the price move up to the $41k zone.
Moreover, Woo revealed that Bitcoin has since moved below the 200-day moving average support from the 2020 fourth quarter. This translates to having more gains from the accumulation of the BTC.
As the analyst further explained, the action reflects the general pattern of the broader crypto industry. Both Bitcoin and Ethereum have significantly declined by moving below their respective support levels.
Besides, other top altcoins are also not excluded from the price fluctuation, surrounding the entire market like clouds about to rain.
The positive outcome of the price action is that the whole market appears to be recovering from the brief slump, with prices looking to move higher once again.
For example, Ethereum has regained its $3,000 support level, and the BNB is nearly reaching its $400 support zone. Other altcoins are also moving toward a considerable price recovery to complete the remaining trading sessions.
For emphasis, analysts believe the price of BTC is likely to rebound further, barring any negative market performance that may hinder the value of Bitcoin.
After all, it is not a negative market performance for Bitcoin, despite the brief market correction.