Bitcoin has once again sent traders on an emotional rollercoaster, bouncing to $85,000 on Feb. 28 before struggling to secure a strong daily close. The market is at a critical turning point, with a recent low of $78,300. Is Bitcoin going to level off, or are there more drops in the cards? Analysts are still not sure what will happen. Some think the price will stay in a narrow band for a while, while others believe it will bounce back after being oversold.
Bitcoin Price Action
Bitcoin has been going back and forth between bullish and bearish forces lately, which shows that it is unsure. TRDR.io data shows that when Bitcoin fell to $78,300, there was intense spot bidding at Coinbase. However, it’s still not clear if buyers will continue to buy. Crypto broker Magus thinks that BTC will likely stay between $72,000 and $85,000 for a few weeks before making a big move. The fact that prices are moving back and forth shows that neither bulls nor bears are entirely in charge.
Bear Trap or Temporary Bottom
Some traders think that the way Bitcoin’s price is moving now is like a classic bear trap, where people with little or no money sell out of fear before the price quickly rises again. However, the lack of strong spot demand is a sign that you should be careful. Trader Horse pointed out that political events, such as President Trump’s words over the weekend, could change the course of Bitcoin’s price. If there is more pressure to sell, BTC could test the lower end of Magus’ predicted range before it finds more significant support.
Oversold Bounce
Even though Bitcoin is very unstable, a 29% drop from its all-time high of $110,000 is standard during rising markets, according to history. A crypto trader named “intern” said that 30% drops have been common in Bitcoin’s past and are often great times to buy. If people on the market think that BTC is oversold, there could be a significant recovery coming soon.
Conclusion
It’s still not clear what Bitcoin will do next, but key signs point to a phase of range-bound prices before a clear breakout. While some people are afraid of a bear trap, corrections of this size usually lead to big surges.
