Bitcoin began to tumble after a sharp rejection at $9,000 resistance, driving the price down as low as $8,000. Within the hour BTC plunged again to $7,700 before recovering to prices just below $8,000. Is this the pullback analysts have been forecasting?

Bitcoin is down 8.7 percent in the last 24-hours. OpenMarketCap posts 24-hour real BTC volume of $2.4 billion while CoinMarketCap indicates reported volume of $22 billion.

The sudden fall in prices follows rejection at $9,000 support on May 30. The drop has erased all of the gains from May 26, which saw the price shoot up from just below $8,000 to above $8,800 and testing $9,000 resistance three times before plummeting.

The consensus among crypto traders on Twitter is bearish or uncertain. Josh Rager asserts that the CME Bitcoin futures gap may offer support at $7,175 as prices fall.

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Luke Martin pointed out that this is the first major retest of $8,000 since the beginning of the two-month uptrend.

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Meanwhile, The Crypto Monk, who was bullish up until the rejection from $9,000, had his position invalidated with the break of $8,000 support.

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That said, several analysts have said price corrections are normal during bull runs.

Crypto Quantamental, another popular Twitter account lead by an experienced Wall Street portfolio manager, said short-term drawdowns are “normal and expected” in a bull run.

The analyst also noted that Bitcoin’s volatility enables sharp drops in price even during major upward rallies, a trend that was first noticed during the bull market of 2017. The tweet was accompanied by a chart showing just how common these drops are.

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As suggested yesterday by CryptoSlate’s market analyst Ali Martinez, “bitcoin could be preparing for a correction that could take its market valuation down to around $6,000. A reversal candlestick pattern that formed last week and a combination of the TD Sequential Indicator, the RSI and the StochRSI are all indicating that a pullback is likely.”

It seems that pullback is materializing.

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