Keep an eye on Bitcoin price levels as 52K supertrend is at risk of failing

Bitcoin’s bullish momentum is at risk as the Mt. Gox reimbursements trigger the largest wave of liquidations in years, putting the cryptocurrency’s upward trend in jeopardy. The price of BTC took a 5% hit on July 5, based on data from platforms like Cointelegraph Markets Pro and TradingView, leading traders to closely monitor key support levels crucial for the bulls.
Traders are now focusing on crucial levels of support, with the $52,000 mark being a significant area of interest for well-known trader Matthew Hyland. This level coincides with the floor of Bitcoin’s supertrend indicator on weekly charts, a key support level that has been holding firm since the cryptocurrency’s record high of $73,800 in mid-March.
The supertrend indicator utilizes the average true range to construct a trend line that helps identify buying and selling phases for BTC/USD. The cryptocurrency has been trading above this supertrend line since the conclusion of the last bear market in 2022.
Looking back at historical Bitcoin bull markets, the current decline from all-time highs appears comparatively moderate. Over the years, BTC/USD has experienced multiple instances of a 38% dip, suggesting a potential capitulation target around $45,750.
In response to market dynamics, Adam Back, the founder and CEO of Blockstream, criticized the volatile nature of market sentiment, advocating for hodlers to increase their exposure to both Bitcoin and shares of MicroStrategy, the company known for holding the largest BTC reserves among public firms.
Adam Back highlighted the importance of maintaining perspective by pointing to past bull runs that also witnessed significant drawdowns. He noted that the current dip of approximately 26% is within the realm of historical corrections.
Trader and analyst Rekt Capital echoed a similar sentiment, remaining unfazed by the recent pullback. Analyzing the current decline of 21% lasting 45 days, he compared it to previous cycles, indicating that the average retracement depth and duration align closely with historical patterns.
Both Adam Back and Rekt Capital emphasized that historical trends in BTC price movements are playing out once again, suggesting that the cryptocurrency’s market behavior is following familiar patterns. As always, this article does not provide investment advice, and readers are encouraged to conduct their own research before making any financial decisions.