Bitcoin’s price has experienced a notable decline of approximately 21% from its all-time high. Despite this, historical patterns suggest that there is a possibility of Bitcoin falling further to the $50,000 mark in the near future.
According to data from CoinMarketCap, Bitcoin’s price fell over 12% on the weekly chart and currently stands at $57,780 as of 1:10 p.m. UTC. This marks a decrease of 21.6% from its all-time high of $73,750 reached on March 14.
Rekt Capital, a well-known Bitcoin analyst, has identified the current correction as the most significant retracement of this cycle. In a post on May 1, they stated that the pullback has lasted for 48 days, surpassing the longest retrace of 63 days seen during this cycle.
Previous Bitcoin rallies have also experienced similar corrections. Sister Laura, a pseudonymous Bitcoin trader, revealed in an April 30 post that during the 2018 bull run, Bitcoin encountered five corrections of over 30% and an additional 29% correction.
The loss of a crucial support level at $59,000, which also served as the short-term holder realized price (STH-RP) for spot Bitcoin exchange-traded funds (ETFs), could potentially lead to Bitcoin revisiting the $50,000 mark. Jag Kooner, the head of derivatives at Bitfinex, expressed this view to Cointelegraph.
If Bitcoin’s price were to drop below $60,000, it is estimated that over $750 million worth of cumulative leveraged long positions would be liquidated across all exchanges, according to Coinglass.
Interestingly, Bitcoin’s price fell below the $60,000 mark shortly after the launch of the first spot Bitcoin ETFs in Hong Kong. These ETFs garnered $12.4 million in daily trading volume on their debut, which was lower than expected due to challenging macroeconomic conditions, as stated by James Wo, the founder and CEO of DFG.
It is important to note that this article does not provide investment advice or recommendations. It is always crucial for readers to conduct their own research and analysis before making any investment or trading decisions.