Bitcoin is hovering at about $8,680 after a sharp drop that saw the leading cryptocurrency fall $400 in a matter of minutes.
The plunge happened on Sunday, bringing BTC from $9,056 to $8,650 in an instant.
Analyst Josh Rager says a natural correction is warranted after Bitcoin’s strong start to the year.
Bitcoin began the month at $7,225, and Rager now expects Bitcoin to continue to correct and land at around $8,000 before resuming its uptrend. But if BTC drops down to $7,700, he says traders will have good reason to be concerned.
“BTC pullbacks should be expected. The important thing to keep an eye on is the market structure and the trend change. Price would most likely bounce at low $8,000’s. Unless price made its way down $7,700, I wouldn’t worry.”
Rager says he believes BTC may be at the start of a new rally that takes it as high as $85,000. But first, Bitcoin bulls will need to find a way to break $9,400, a line that held as support from June through September of last year.
According to Rager, a new long-term bull trend will only be confirmed if Bitcoin can cross $10,350.
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