From the past 3-4 days, we saw a bullish trend in the price of Bitcoin, and the charts indicated steady growth in the prices, but things changed overnight when the price came crashing down. The cryptocurrency lost its momentum by 8% in a night.
Bitcoin was trading at a weekly high of $10,824.49, and within a few hours, the price saw a downward correction. It came down to $10,250, and people were still hoping for a rise, but the bulls were not able to provide the much-needed push, and the price came down. By the end of the day, Bitcoin was trading at $9,864.
This sudden price drop in Bitcoin has completely shaken the market of cryptocurrencies. With the fall in the prices of Bitcoin, altcoins also saw a decline in their prices for the week. Joe DiPasquale, CEO of BitBull Capital, said that this downward correction is caused because Bitcoin failed to break the resistance of $11,000 because of low trading volumes.
However, investors and crypto enthusiasts are still keeping a positive attitude towards the price drops and think that the prices will jump back to where the week started. Recently, Bakkt announced that they had received the approval for physically settling bitcoin futures contracts and this can lead to a higher volume and new capital.
