On May 23, the price of Bitcoin experienced a 2.5% drop, surprising traders who had anticipated new all-time highs following the cryptocurrency’s rally to $72,000 earlier in the week. Data from Cointelegraph Markets Pro and TradingView revealed that leveraged long traders were taken aback by Bitcoin’s sudden decline from a high of $71,980 on May 21 to an intra-day low of $67,550 on May 23.
According to independent analyst Jelle, Bitcoin is still following a similar trajectory to the 2016-2017 period. Jelle believes that once Bitcoin surpasses its 2021 all-time highs, it will enter a parabolic uptrend and reach a price of $100,000. Similarly, trader and analyst Mags suggested that the current correction in BTC could be a “fake out,” a pattern that has been observed since it hit a low of $15,500.
Jelle also noted that Bitcoin’s recent recovery above $65,000 led it to break “all key resistance levels,” including the 50-day exponential moving average (EMA) at $64,665. This development has resulted in “hidden bullish divergence,” further supporting Bitcoin’s upward movement.
Analyst Matthew Hyland pointed out that the BTC price is on the verge of retesting the demand zone between $64,000 and $67,000, which represents the neckline of an inverse head-and-shoulders pattern. Wolf Of All Streets, another popular analyst, shared a chart indicating that bulls would want to see the $67,000 support area hold, as this would result in a price range between $67,000 and an all-time high of $73,835.
However, those who bet on BTC’s recovery from its current levels faced significant losses on May 23. The downturn led to the liquidation of $159.3 million in long positions, contributing to a total wipeout of $227.51 million within 24 hours, according to Coinglass data. In the past hour alone, $46.75 million in BTC leveraged positions were liquidated, with $39.6 million of that coming from long positions.
It’s important to note that this article does not offer investment advice or recommendations. Investing and trading always involve risks, and readers should conduct their own research before making any decisions.