Bitcoin Price Drops $1,000 as Stocks Plummet — Bulls Quickly Buy the Dip

Today as the closing bell rang at Wall Street, Bitcoin (BTC) price corrected sharply, pulling back below $6,000 less than 24-hours after hitting a 7-day high at $6,900. The $1,000 drop from $6,670 to $5,670 is sure to have shocked investors as it is slightly below analyst’s price correction estimates but at the time of writing it appears that traders are buying into the dip.

Crypto market daily performance. Source: Coin360

The price has bounced at $5,700 and currently bulls are pushing it back above $6,200. After this week’s stellar 82.4% recovery from $3,775, Bitcoin was somewhat overdue for a pullback and as discussed in previous analysis the price was expected to retest underlying support at either $5,900, $5,500 or $5,380.

BTC USDT 4-hour chart. Source: TradingView

Despite the $1,000 drop to $5,670, the RSI on the 4-hour timeframe remains in an uptrend, above the ascending trendline in bullish territory with a reading of 62.

The MACD has begun to curve down from the overbought…