For the last four days, Bitcoin has stagnated at around $6700 until today. At the time of press, bitcoin is trading at $6140 a slash of about 7% in the last 24hrs. This comes 2 weeks after the price plummeted from $7801 to $4185 almost half the price in a day.
Few days after Bitcoin price drops, a bull trap move seems to be the most probable cause of the prices skyrocketing with over 20%. The price fall happened after the US President, Donald Trump, canceled all travel fright from Europe.
Why the sudden bitcoin price drop
In a single day, the prices went up from $5867 to $6721 and the price change seemed unreasonable. Analysts termed it as one of the bull traps. They warned on similar but inverse outcomes in a few days or weeks when the bulls liquidate all their digital assets.
Nothing major has happened in the market to explain why the bitcoin price drop would go as low as 7% in a single day. Analysts say the only possible reason and explanation for the plummeting would be a bull trap speculated before. Additionally, the analyst says the Covid19 pandemic is a factor but statistically has nothing to do with the bitcoin price drop.
At the current price and the bitcoin halving expected in May, it means that miners would be making losses. For miners to cover the cost of mining, they would need to sell it at a price way above $6000 mark. The best thing to do to avoid making losses would be holding it until the prices can flush.