Bitcoin’s price has experienced a significant decline of approximately 21% from its previous all-time high. Despite following a pattern commonly observed during bull market corrections, there is a possibility that Bitcoin could drop further to reach the $50,000 mark in the near future, based on historical trends.
According to data from CoinMarketCap, Bitcoin’s price has fallen by 25% from its all-time high, currently standing at $57,780 as of 1:10 p.m. UTC. This marks a 21.6% decrease compared to its peak price of $73,750 achieved on March 14th.
Rekt Capital, a well-known Bitcoin analyst, has observed that the current correction is the most significant retracement seen during this particular cycle. The pullback has lasted for a period of 48 days, surpassing the previous longest retrace of 63 days.
Similar corrections have been witnessed during previous Bitcoin rallies. In the 2018 bull run, Bitcoin experienced five corrections exceeding 30%, along with an additional 29% correction, as reported by pseudonymous Bitcoin trader Sister Laura.
The recent drop in Bitcoin’s price has resulted in the loss of a significant support level at $59,000, which also served as the short-term holder realized price (STH-RP). This refers to the average inflow price of spot Bitcoin exchange-traded funds (ETFs). Jag Kooner, head of derivatives at Bitfinex, suggests that if Bitcoin continues to decline and falls below $59,000, it could potentially revisit the $50,000 mark.
Coinglass reports that if Bitcoin’s price falls below $60,000, over $750 million worth of cumulative leveraged long positions would be liquidated across all exchanges.
The decline in Bitcoin’s price below the $60,000 mark occurred shortly after the introduction of the first spot Bitcoin ETFs in Hong Kong. However, the trading volumes of these ETFs were lower than expected due to challenging macroeconomic conditions, according to James Wo, the founder and CEO of DFG.
It’s important to note that this article does not provide investment advice or recommendations. Each investment and trading decision carries its own risks, and readers should conduct thorough research before making any decisions.