Bitcoin Dropping Below $9,500 Isn't Such a big Deal as Bullish Momentum Remains Intact

Every time the Bitcoin price drops, people grow concerned. The world's leading cryptocurrency isn't dying, even though things may look somewhat bleak. As is usually the case, there will be highs and lows where this currency is concerned. Right now, there is a low and uneasy period associated with it. Most of the statistics that matter, however, show a rebound will occur in the not-so-distant future.

The Dip Below $9,500

After an extensive period of remaining above $10,000, things have turned around for Bitcoin. Not in a positive manner either, as the price has dropped significantly since last night. These steep losses are nothing new in 2019. Bitcoin has gone through several ups and downs since late 2017. Even so, it has come out as a stronger currency. People often tend to forget the price was a lot lower than it is today just a few months ago. By rising from roughly $3,000 all the way to $9,500, a very strong market signal has been sent to everyone willing to take notice.

Based on that information alone, this recent dip seemingly doesn't matter much. It is a temporary blip on the radar. The current lack of upward momentum is what worries some speculators and investors. During previous drops below $10,000 this year, it took Bitcoin a while to recover. There is no indication that the current trend will be any different in that regard. One also has to keep in mind a 7% drop is nothing to be too worried about. Those who look at Bitcoin's price history will know such discrepancies are rather common.

Longs get Liquidated Hard

A lot of traders on the BitMEX platform decided to go long on Bitcoin. At that time, it was a straightforward decision. The overall momentum seemed to lean toward the bullish side of the spectrum. It is moments like those which pose the biggest risks. When all indicators align with one's expectations, things don't work out too well all that often.

As can be seen in the Tweet above, a lot of BitMEX longs got liquidated overnight. Although the amount of money might seem staggering, this is not exceptional. When longs or shorts get liquidated on this platform, the total amount often equals to tens of millions of dollars. Nor will these statistics deter traders from going long or short at maximum leverage in the future. Bitcoin remains a speculative asset first and foremost. There is good money to be made, but it is also possible to suffer major financial losses when overleveraged.

The Relative Strength Index

The Bitcoin price is a mere aspect of interest regarding the world's leading cryptocurrency. It is always crucial to look at the bigger picture. For Bitcoin, the market's relative strength index is an intriguing indicator. This is especially true when looking at on a larger time scale. More often than not, traders only look at the past week or month of Bitcoin trading.

When examining the Bitcoin RSI, there isn't much to be concerned about. In fact, it seems the Relative Strength Index is still rising throughout 2019. This is despite the current market dip, as well as all others which took place this year. As such, there is a genuine chance the upward momentum will resume at some point this year. The only factor which can't be determined is when this will take place exactly.

Max Keiser Weighs in

It is always fun to see how cryptocurrency "influencers" feel about the current Bitcoin price momentum. Max Keiser sees nothing of concern at this time. He even highlights how the miners continue to add more hardware tot he network. As long as mining remains profitable, things are looking up for the community as a whole.

The claim about PoS coins will undoubtedly rub some people the wrong way. Then again, 2019 has been bullish for Bitcoin in general. Altcoins haven't fared all that well, for reasons unknown. The Bitcoin Dominance Index only further confirms this trend. This year has not resulted in an altcoin season as of yet. That is all the more reason to remain bullish on Bitcoin, regardless of its current price.

Disclaimer: This is not investment advice. All of the content produced by this user is for entertainment and educational purposes only.

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