The bitcoin price took another dive on Wednesday, slipping below the $3,700 mark after trading within a tight window for several days.
Bitcoin had bounced around the $3,800 mark for most of the day but dipped below it shortly before 14:00 UTC. Six hours later, the flagship cryptocurrency experienced a sharp drop that carried it from $3,795 to $3,658 within a matter of minutes.
That move took the bitcoin price to its lowest price since Feb. 18 and represented a 13 percent pullback from its Sunday high of $4,190. The cryptocurrency is currently trading at $3,731 following a moderate recovery.
Bitcoin has not yet crashed through any crucial support levels, but today’s pullback has placed a bull market even further out of reach. The cryptocurrency faces strong resistance at $4,200, and most analysts have pegged $5,000 to $6,000 as the level that it must reach to truly exit its prolonged bear market.
Crypto broker BitOoda had earlier in the day warned clients that the options market did not forecast a near-term rally, as the call/put ratio – a simple measure of the number of call options being traded relative to put options – stood at just 1.95. By contrast, the call/put ratio spiked as high as 16.17 on Feb. 2 as the bitcoin price prepared for its almost month-long surge.
“As for now, through this analysis, we seem to be stuck in this $3,200-$4,200 range and therefore remain BEARISH. The ‘trend is our friend’, and will stick to this outlook until forced to do otherwise.”
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Featured Image from Shutterstock. Price Charts from TradingView.