Bitcoin ($BTC) Price Slumps by $2,000 in an Hour, Minor Shakeout or Price Pullback?

Bitcoin ($BTC) Price Slumps by $2,000 in an Hour, Minor Shakeout or Price Pullback?

Bitcoin’s ($BTC) price fell from near $53K level earlier in the morning to a daily low of $50,681, seeing a $2,000 price slump under an hour. The top cryptocurrency managed to convert $50K key resistance in strong support over the past week and was looking set for $55K before the sudden price slump occurred.

While the exchange balance of BTC has been on a continuous decline, miners have started to take profit as they have moved their Bitcoin holdings onto exchanges over the past three days. According to Glassnode data, the current price range of $50K is highly profitable for miners and some of them might have started taking profits. Nearly 30K BTC was sent by miners onto exchanges estimated to be worth $145 million.

Rekt Capital, a popular crypto analyst pointed that Bitcoin could be retesting its $50K and a rebound from this level would confirm the final move ahead above the $55K price range.

"Any dips into ~$50400 or ~$51000 will likely figure as a retest attempt to confirm the breakout beyond the key blue level"Retest is now in progress$BTC #Crypto #Bitcoin https://t.co/tWUyNcxfUZ pic.twitter.com/SWKKRAVe8v— Rekt Capital (@rektcapital) September 7, 2021

Bitcoin On-Chain Metrics Remain Strong

The top cryptocurrency has continued to flash bullish signals in the long term. The network activity has increased along with unique addresses. These metrics were a key factor in driving the price near $53K, but couldn’t get through it. Analysts believe the current retest to the $50K level is nothing more than a minor shakeout before the next leg up.

📊 #Bitcoin has rallied back to $52.9k on rising on-chain support from metrics like unique address activity and negative crowd sentiment. We have gone over what's to come for $BTC and #crypto with an update on our major metrics. Read all about it. 📰 https://t.co/hl3z2a09DM pic.twitter.com/5ziSiGio00— Santiment (@santimentfeed) September 7, 2021

The top cryptocurrency has recovered most of its losses from the May-June market crash and currently eyeing to retest all-time-highs (ATH) after establishing its position above $50K. The top cryptocurrency is 21% down from its ATH which it may retest once it conquers the on-chain key support zone of $53K-$59.5K.

Earlier today, Bitcoin became a legal tender in El Salvador three months after the country’s congress voted in favor of the Bitcoin law. The country is celebrating the day as “Bitcoin Day,” and popular analyst Plan B believes the recent price slump could have a connection to it. The analyst suggested that people are “selling the news” at the moment.

Funny to see all "sell the news" traders handing over their bitcoins to El Salvador and Hodlers around the world. Make sure you transfer your btc out of the exchanges and into your own wallet! pic.twitter.com/H37El8R4Te— PlanB (@100trillionUSD) September 7, 2021

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