Bitcoin Price Recovers 20% to Break $11,000; Pullback Done, Huge Rally Next?

Within a week, from June 26 to July 2, the bitcoin price fell from $13,868 to $9,651, recording a 30 percent pullback against the U.S. dollar. Technical analysts have expressed optimism towards the swift recovery of bitcoin from a large pullback as the dominant crypto asset has shown a change in trend within a short time frame.

According to Josh Rager, a cryptocurrency technical analyst, when the bitcoin price experiences a steep correction, it is often followed by a major rally. It remains uncertain whether the bitcoin price would follow the trend it has shown throughout the past several years, particularly before 2019, because the structure of the global crypto exchange market was fundamentally different pre-2017.

Subsequent to the brutal 16-month correction in 2018 during which the bitcoin price fell by more than 80 percent against USD, major financial institutions and well-regulated companies have entered the space to strengthen the infrastructure of the market.

However, Peter Brandt, a prominent trader and a best-selling author, said that the correction bitcoin demonstrated in the past week is mild in comparison to corrections seen in 2015 to 2017, which many indicate that the trend of the market, in general, remains strong.

While the expectations for the approval of a bitcoin ETF has noticeably declined since early 2019, it remains to be seen whether a drop in the probability of an approval would directly affect the trend of the asset in the upcoming months.