Despite the jarring nature of this drop, it is important to note that it may not be as bearish as it seems, with its intense bounce from the its intra-plunge lows seeming to suggest that it will soon see a continuance of its mid-term uptrend.
Analysts are now noting that the crypto’s recovery from this flash crash seems to suggest that it will soon continue climbing higher, with one top trader targeting a movement back to its 2020 highs at roughly $10,500.
Bitcoin Plunges During Market-Wide Flash Crash, But Technical Situation is Still Bullish
At the time of writing, Bitcoin is trading down just under 5% at its current price of $9,670, which marks a notable decline from daily highs of $10,200 – around where the crypto had been trading at for the past couple of days.
It is imperative to keep in mind that although today’s drop is overtly bearish, BTC is still well above where it was trading at on Monday when it plummeted to $9,400, and buyer’s ability to defend the lower-$9,000 region points to some underlying strength.
HornHairs, a prominent cryptocurrency analyst on Twitter, spoke about this selloff in a recent tweet, in which he explained that a daily close above $9,485 suggests that Bitcoin is bound to see an extension of its recent bullishness.
“BTC Macro Update: Nasty shakeout so far. Midrange pushing back. Want to see price close today above $9485 to maintain range low and bullish structure. Would still look good for further upside in that event. 2 hours to go,” he explained, pointing to the range seen below.
$BTC Macro Update:
Nasty shakeout so far. Midrange pushing back.
Want to see price close today above $9485 to maintain range low and bullish structure. Would still look good for further upside in that event.
2 hours to go. 
pic.twitter.com/B4lavJCKpQ
— HornHairs 
(@CryptoHornHairs) February 19, 2020
BTC Could Still Be Just Days Away from Setting Fresh 2020 Highs
HornHairs also expressed some further bullishness in another recent tweet from after the drop, explaining that he is targeting a near-term movement to Bitcoin’s 2020 highs at $10,500.
“BTC Long: Can’t get much close to invalidation on the midterm outlook here. I’m in after the sweep on the 2H close. Targeting $10.5k. Now or never,” he explained while pointing to the chart seen below.
$BTC Long
Can’t get much close to invalidation on the midterm outlook here. I’m in after the sweep on the 2H close.
Targeting $10.5k.
Now or never. pic.twitter.com/OEA1W4pE0w
— HornHairs (@CryptoHornHairs) February 19, 2020
How Bitcoin trades in the coming several hours should offer some insight into the mid-term implications of this latest selloff, and any bullishness at this level could suggest that this was a bear trap that will be followed by significantly further upside.
Featured image from Shutterstock.