On Thursday, the super impressive surge in BTCUSD that had resulted in the market stalling just shy of the record peak from 2013, came screeching to a dramatic halt, with the market crashing down. The price of Bitcoin was down as much as 20% off the high of the day, before recovering and closing down by a more modest 10% on the day. But the cryptocurrency is likely to remain under pressure in the days ahead before any consideration is to be given for a rebound back towards the record high.
So why is this? Well, first things first, even when you consider the intensity of Thursday’s decline, the fact remains that the market has seen an even more intense rally to the upside in recent months. And so even after Thursday’s drop, both weekly and monthly technical studies are still well overextended and calling for additional corrective declines. Furthermore, moves of this magnitude in a new and developing market are not unusual. When you look back at price action since the inception of BTCUSD’s young life this becomes quite clear.