Bitcoin's Overnight Crash Doesn't Stop Experts From Remaining Macro Bullish

On May 30, overnight, the valuation of the crypto market dropped by $19 billion as the price of bitcoin briefly dropped from $9,000 to $8,000 - a staggering 11% within a few hours on exchanges like Bitstamp.

Despite the $1,000 decline in the price of bitcoin on May 30, the asset has performed strongly against the U.S. dollar throughout the past month.

Ether, bitcoin cash, litecoin, XRP and other large market cap crypto assets closed that day with a 9% drop against the United States dollar, while the timely recovery of bitcoin allowed the dominant crypto asset to minimize its drop to about 5%.Are technical analysts still macro bullish on bitcoin?

The last time bitcoin's price dropped below $7,000 was in a flash crash on March 17, when it fell to $6,400, triggered by the unexpected sell-off of 5,000 BTC on Bitstamp, which then led to the mass liquidation of contracts on BitMEX. Bitcoin has since demonstrated strong momentum, with signs of "Fear of missing out" among investors, creating a vertical rally to the upside.

In the past month, within a 30-day span, the price of bitcoin has increased from $5,322 to over $8,700 by a staggering 54%. Caption of the crypto 1 month performance.

Still, based on the historical performance of bitcoin and its tendency to see a major correction in the tune of 30% to 40% following a large spike in price, Cred noted that a 30% drop in the future remains a possibility.

On May 30, at its weekly peak, the price of a share of GBTC, a publicly listed investment vehicle operated by Digital Currency Group's Grayscale that enables investors to invest in bitcoin through a stock market in OTC Markets, hit $12.40.

Every share of GBTC represents 0.00098247 BTC. As such, at $12.40 a share, the price of bitcoin on over-the-counter markets essentially hit $12,182, trading with nearly a 40 percent premium.

The overall increase in confidence and improvement of sentiment around the crypto market have also led the hash rate of the Bitcoin blockchain to achieve a 2019 high of 59 exahash, nearing its all-time high of 60 exahash that was reached in September 2019.As the price rises and mining becomes more profitable, the hash rate supporting the Bitcoin blockchain is expected to rise continuously in the near term, which could be considered a positive indicator for stability.

While traders generally foresee a strong drop in the price of bitcoin if it struggles to float above $8,000, opinions differ as to the extent the asset would fall if it falls below $8,000.