The price of Bitcoin experienced a surprising 2.5% decrease on May 23, disappointing traders who were expecting new all-time highs following its rally to $72,000 earlier in the week.
According to data from Cointelegraph Markets Pro and TradingView, leveraged long traders were taken by surprise as the price of Bitcoin suddenly dropped from a high of $71,980 on May 21 to an intra-day low of $67,550 on May 23.
Independent analyst Jelle commented on the situation, stating that Bitcoin is 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 with a projected price of $100,000.
Trader and analyst Mags suggested that the current Bitcoin correction could be a “fake out,” a pattern it has exhibited since hitting a low of $15,500. Jelle also noted that Bitcoin’s recent recovery above $65,000 has resulted in “hidden bullish divergence,” further supporting its upward movement.
Analyst Matthew Hyland pointed out that the BTC price is approaching a retest of the demand zone between $64,000 and $67,000, which represents the neckline of an inverse head-and-shoulders pattern.
Another popular analyst, Wolf Of All Streets, shared a chart indicating that bulls would want to see the $67,000 support area hold, as this would indicate a range between $67,000 and an all-time high of $73,835.
Unfortunately, those who were betting on Bitcoin’s recovery from its current levels experienced significant losses on May 23. Long positions worth $159.3 million were liquidated during a 24-hour wipeout of $227.51 million, according to data from Coinglass.
In the past hour alone, $46.75 million in BTC leveraged positions have been liquidated, with $39.6 million of these being longs.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.