Summary
- Bitcoin’s drop below $50k on August 5 is similar to China’s mining ban and FTX collapse.
- CryptoQuant author reveals short-term holders SOPR indicator.
Bitcoin’s price dropped below $50,000 on August 5, a day that has been called Black Monday by CryptoQuant’s verified author, Axel Adler.
In a recent post on his X account, he addressed the similarities between the price dip from the other day and the price moves that BTC experienced during the 2021 China ban on mining and the 2022 FTX collapse.
According to him, yesterday saw a record number of coins sold at a loss, the move was comparable to the ban on mining in China and the collapse of the FTX exchange.
He advised followers to hodl, and he also shared a graph featuring Bitcoin short-term holders SOPR indicator.
In the graph he shared, we can see the price drop triggered by the covid pandemic, the one following the China mining ban, and the price drop following the Luna disaster and the collapse of the FTX exchange.
Bitcoin Price Above $55,000
Regarding Bitcoin’s price today, at the moment of writing this article, BTC is trading above $55,000, and the coin is up by over 4% in the past 24 hours.
Bitcoin’s price was able to bounce back quickly following yesterday’s dip.
Unlike the equities market where many traders in profit might be looking to cash out on today’s bounce back, BTC investors have already recognized the strong foundation of support following more crashes in the digital asset’s price in 2024.
Today, Adler shared another post via his X account, telling followers he hopes that everyone’s alive following the Black Monday that saw the BTC price dropping below $50,000.
He also shared the current support and resistance levels for the coin as follows:
Resistance
- STH: Realized Price (Cost Basis): 63.9K
- MA200D: 61.5K
Support
- MA365D: 49.1K
When he was asked whether we are in a downtrend or not, he answered that there are no long liquidations at the bottom, and he hopes that the bad news for this week has ended, so as not to dump the market.
Next Bitcoin Bull Run Incoming
Adler shared another message saying that most days, the Bitcoin price remains below the ATH, but there comes a period when the ATH changes more frequently than usual – this is what a bull run is.
He shared the following historical data and forecast for the next bullish moves:
- 2017 rally – 292 days
- 2021 rally – 123 days
- Next rally – coming soon
Popular trader Peter Brand, also said via a recent post on X that we can expect an upcoming Bitcoin bull run based on historical price moves.