Reasons for Bitcoin Dumps

Although there is no negative news in the market at the moment, the drop in the price of Bitcoin along with the drop in the price of other altcoins is causing worry on the forehead of investors. Currently Bitcoins are moving at their own pace and as Bitcoin dominance rises to the top it is a cause of concern for unique coins and coins disappearing right at the bottom. Coming to the present Bitcoin does exactly what the Bitcoin chart says it will do. However, one thing to keep in mind is that there are fundamental factors behind Bitcoin price declines that can be confusing at times. But Bitcoin's price action almost always tells you the true story. Follow the price action and stay in tune with the fundamentals.



[source](https://pixabay.com/photos/tesla-stock-chart-trading-6537378/)


As we have seen since the completion of the Bitcoin halving last year and the approval of the Bitcoin ETF, Bitcoin's weekly chart shows a pin bar candle close for the week. During that time basically Bitcoin retraces about 50% of its entire upward swing from just below $50,000 to the new all-time high it has now created. It has filled about 80% of the gap with a parabolic move to its local peak. Pin bar is very important to understand as we should know about it in current situation as it is one of the main reversal candle for market tops and bottoms.




So having this candle print for the week, we will see that Bitcoin has a bottom but we may experience some consolidation for a few days before it finally pumps out. But expect Bitcoin to drop back to $76,000 soon as it is currently hovering around $84k before rallying, but I don't see prices below that as it will cancel the setup and send the price lower.

However if Bitcoin can hold the position it is currently in and close the candles above $85k to $90k then expect Bitcoin to be positioned for another strong upside rally targeting the $150,000 level. Market participants should keep a close eye on the chart as it remains the most reliable indicator. While news and narratives can create temporary volatility, the chart tells you what you need to know to take calculated risks in the market.