The price of Bitcoin (BTC) is collapsing dramatically, which is a good argument to buy

The price of Bitcoin (BTC) is in a downward trend as the broader digital currency ecosystem has taken a dramatic and bearish turn. Bitcoin is down 5.09% at the time of writing, a plunge that comes despite the obviously bullish fundamentals currently surrounding the market.

Bitcoin (BTC) Price Drop: An Opportunity in Disguise

Bitcoin is quickly shedding gains as the price stands at $35,774.80 and breaks the $36,000 support zone for the second time this week. Despite the negative impact this current price drop is expected to have, this rapid downward spiral in Bitcoin (BTC) price is seen as scope for accumulation, according to top market analyst CrediBULL Crypto.

Based on its previous analysis, CrediBULL Crypto has always predicted an impending retest of the local bottom at the level of $34,600. Although the downward spiral has not yet reached this level, the thesis underlying the forecast has been confirmed with the current outlook.

According to the analyst, the majority of the profit-taking is system-related and can be attributed to the long positions that have been built up extensively in the past few days. In a video analysis, he revealed that with short sellers being squeezed out of the market, a logical pullback is imminent.

Data from CoinGlass lends credence to this thesis as a total of $217.79 million was liquidatedfrom the market in the last 24 hours from over 77,200 traders. Bitcoin’s liquidation figures during this period amount to $61.42 million, mostly from long traders.

This downward trend in Bitcoin (BTC) price is not permanent as CrediBULL Crypto believes that now is the time for Bitcoin price to “recover”.

Altcoins are getting involved

Altcoins broadly fared no better, with Ethereum (ETH) falling as much as 4.2% to $1,962.13 overnight. The risk of contagion is quite high as Ethereum saw a surge the day after the news the BlackRock iShares Ethereum Trust application with the United States Securities and Exchange Commission (SEC).

The fall in altcoin prices reflects how dependent most altcoins are on the price of Bitcoin (BTC). Solana (SOL) fell 6.89% to $61.61, Cardano (ADA) fell 1.73% to $0.3703 and XRP gave up earlier gains with a 4.65% decline 0.6177 US dollars again.

Good news is that any future recovery in Bitcoin price will likely also trigger a broader rally in altcoins, a trend that the market can bank on.

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