Skip to content

Analysts attribute today’s Bitcoin slump to ‘small weak hand test’

Analysts attribute today's Bitcoin slump to 'small weak hand test'

Cryptocurrency analysts view Bitcoin’s Thursday price drop as a silver lining. The drop has forced out weak hands and potentially opening the doors for Bitcoin’s sustainable rally to new highs.

On Wednesday, Bitcoin was unable to maintain gains above the $12,000 level which was the main resistance barrier. By press time, the asset is trading at $10,730. The huge price drop in 24 hours could be connected to the Bitcoin Whales, who might be dumping on the market.

Bitcoin’s last 24H chart. image.

The drop in price can be interpreted as market weakness taking a toll on emotional traders. At the same time, market sentiment levels are worsening. Emotional traders have been triggered to sell the assets offering an opportunity to buy Bitcoin at a cheaper price before initiating a new rally. 

Strong breakout expected

With high funding, new investors have turned away from putting their money in Bitcoin. At the same time, existing Bitcoin holders are discouraged from boosting their long positions.

From a historical perspective, such scenarios usually result in a strong bearish breakout. Mostly, beginner investors who suddenly sell their assets are compelled to buy back their BTC at a higher price once whale traders launch a new rally.

Additionally, the cryptocurrency market usually shakes out weak hands with temporary price pullbacks after strong breakouts. The recent breakout was on Wednesday when Bitcoin traded at above $12,000. 

A stronger buying pressure might emerge, leading to a re-test of recent highs above $12,000. On Wednesday, analysts held the view that if Bitcoin maintains gains above $12,000 then hitting $15,000 will be in sight.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.