We all have witnessed a firm uptrend in Bitcoin (BTC) over the past several days, which has predominantly been the result of the massive upwards momentum that was sparked when it tapped lows of $6,400 earlier last week.
This momentum helped BTC to reach as high as $7,700 today before it was met with substantial resistance that led its price reeling back down to the lower $7,000 region, although analysts expect this movement to be short-lived and followed by an extension of this newfound upwards momentum.
Bitcoin Drops to $7,400, however this Downwards Movement seems temporary.
Bitcoin is trading up over 2% at its current price of $7,350, at the time of writing, which marks a slight drop from its daily highs of $7,700 that were set earlier this week.
Although the rejection at this level does seem to spell some trouble for the cryptocurrency, as it went as low as $7,250, however bulls have been been able to support the crypto above this level.
Regardless of the fact that the rejection at this level does seem to spell some trouble for the cryptocurrency, it is important to note that analysts widely believe that it will be followed by an extension of its upwards momentum, as this latest drop could simply be driven by BTC filling an open CME gap around its current price levels.
A renowned cryptocurrency analyst on Twitter, Hornhairs has said that he is entering a long around BTC’s current prices, anticipating another rise up to its range highs of roughly $7,700.
How bulls behave from here in the coming hours will offer significant insight into where Bitcoin will lead the aggregated crypto markets next.