3 reasons why Bitcoin price suddenly dropping below $13,000 isn't bearish

The price of Bitcoin fell below $13,000 on Oct. 28 shortly after hitting $13,850 at the day's peak.

First, Bitcoin is still at where it was on Oct. 27, merely 24 hours ago.

Second, BTC rose to $13,850, right below a multi-year resistance area at $13,873.

In the last two days, the price of Bitcoin rallied 8.5% from $13,783 to $13,850 on Coinbase.

Now, on high time frame charts, like the daily chart, for example, BTC price is hovering above a key short-term moving average.

The recent pattern of Bitcoin following up each uptrend with a consolidation phase makes the ongoing rally sustainable.

"A higher spot price & higher spot volume is considered bullish because it means that the rally is based on actual buying instead of degenerates gambling on derivatives."The $13,873 level is a multi-year resistance area.

Bitcoin peaked at around $13,900 in July 2019 across major exchanges.

The inflow of stablecoins is an accurate metric to gauge buyer demand because stablecoins, like Tether, account for a large portion of the cryptocurrency market's volume.

The drop in stablecoin inflows might have triggered a sharp Bitcoin pullback because buyers and sellers were intensely battling over the past week.