Bitcoin Price Dips Below $10,000, Can We Expect A Short-Term Correction?

Over the last 24 hours, the world’s largest cryptocurrency Bitcoin has corrected more than 10% in what can be said as a fast crash. Earlier today on September 4, Bitcoin price took a momentary dip below its major support of $10,000.

This was for the first time that Bitcoin dropped below $10,000 in the last 45 days. However, BTC bulls have kicked-in again as the bitcoin recovers $10,500 levels very fast. At press time, Bitcoin (BTC) is trading at a price of $10,514 with a market cap of $194 billion as per WorldCoinIndex.

However, Bitcoin is still trading at 100% gains from its 2020-low of below $5,000 from the March levels. Over the last 4 hours, nearly $130 million of Bitcoin long positions have been liquidated alone on the popular crypto exchange BitMEX.

Interestingly, while Bitcoin seems to have decoupled itself from Gold, its correlation with the stock market remains strong. On Thursday, Bitcoin and a majority of the top-ten cryptocurrencies saw a selling pressure in the market.

During the same time, the Dow Jones also crashed 2.78% dropping 800 odd points on the single day. On the other hand, Gold price seemed to remain relatively clam staying at around $1900 per ounce.

While Bitcoin takes a momentary dip below $10,000 it has really managed to jump fast back above $10,500. The major zone of defense of Bitcoin is between $10,000-$10,500. As long as this range is maintained, the chances of a prolonged Bitcoin bearish spell are low.

The selling pressure for Bitcoin continues to remain high on the exchange currently.  Some of the other market indicator suggest that Bitcoin miners have been moving this cryptocurrency while many of them are also looking to cash out their BTCs.

It will be interesting to see in which direction does Bitcoin turns swiftly in the coming days.