Bitcoin on Sunday 2nd of August, 2020 experienced a blow-off as it staged a surprise 8 percent drop in price within an hour precisely between 0400 hours and 0500 hours UTC, BTC, however, acted invariance to the expectation of the teaming cryptocurrency enthusiasts who have hoped that the noble coin’s breakout which began on the 23rd of July, has ended.
It is important to mention that there was a massive increase in BTC sell order within few minutes after the coin broke the 12000USD mark for the first time since 2019; this surge was responsible for the fall in Bitcoins price which went down beyond 11000USD on some exchanges, however, the king coin hits 100,000USD on Binance future.
Even though Bitcoin Price has within the past two weeks rose from 9200USD to 12000USD and has rapidly dropped back to trade around 11200USD, a particular type of rapid drop which is technically regarded as “blow-off tops”. Nevertheless, the minor surge experienced on the 2nd of August is an indication that the bigger picture remains unchanged.
Blow-off tops are often preceded by a rapid rise in price which is followed by a rapid fall in price, a keen observation of the BTC price chart over the past two weeks shows that the king coin’s price was not rapid but rather gradual, it rose from 9000USD to 9800USD between 23rd and 26th of June after which it broke out.
However, Bitcoins surge to hit 11500USD and beyond was just within a week after it has broken the 10000USD limit, a surge that was qualified to have happened too soon by Sundays’ turn of event. In the same vein a renowned crypto analyst and economist, Alex Kruger, was of the opinion that the Sunday event is a signal that BTC is ripe for a “Higher highs” in 2020.
Similarly, a comparison with gold revealed a similar signal after a ‘blow-off’, as it has been trading high and hit a new all-time high after central banks started employing loose fiscal and monetary policies, hence since Bitcoin has been behaving in the same manner as gold since March 2020 which was followed by its recovery in the second quarter of 2020, it is reasonable to believe that this recent ‘blow-off’ would push BTC price higher just as it did for gold.