Bitcoin has sustained a strong drop over the past few days as legacy markets have undergone a strong correction after a record rally. The leading cryptocurrency traded around $9,800 on Friday morning as bears sent the cryptocurrency lower.
This is a stark correction from the $12,000 local highs seen just days ago and the $12,500 seen in August.
Bitcoin remains bullish on a macro scale, though, as analysts note that the asset’s long-term chart and fundamentals remain skewed to appreciation.
Related Reading: These 3 Trends Suggest BTC Is Poised to Bounce After $1,000 Drop
Bitcoin Remains Bullish on a Macro Time Frame: Analyst
Bitcoin remains bullish on a macro scale despite the recent drop, one analyst noted in the wake of the correction.
He shared this chart below, which shows BTC printing a clear bounce off a pivotal macro level, suggesting it has turned into support. Not to mention, BTC is currently in a macro bullish market structure due to the break above $10,500 just weeks ago.
Also discussing how Bitcoin’s funding rate on BitMEX and premium crashed as investors sold the cryptocurrency in mass quantites, the
“$BTC funding and premium index reached the lowest it had been since March 19th yesterday… Except this time we’re retesting a multi-year S/R level with a confirmed bullish break in MS all the way up to the monthly chart…”
Chart of BTC's macro price action with analysis by crypto trader HornHairs (@CryptoHornHairs on Twitter). Chart from TradingView.com
Adding to this, Bitcoin’s relative strength index, a measure of the severity of price action, reached notable lows during the drop on Friday. The commonly-used indicator hit the lowest value since the March capitulation.
After March’s crash, BTC underwent a strong bounce that brought it back to pre-crash levels within three months.