Bitcoin’s bull market faces a critical juncture amid a significant sell-off triggered by Mt. Gox reimbursements, marking the largest such event in years.
BTC’s price plummeted by 5% on July 5 alone, based on data from Cointelegraph Markets Pro and TradingView. Traders are now closely monitoring crucial support levels that bulls must defend.
Matthew Hyland, a prominent trader, highlights the $52,000 mark as the primary support to watch. This level coincides with Bitcoin’s supertrend indicator on weekly timeframes, which has been a key price foundation since the cryptocurrency’s all-time high of $73,800 in mid-March.
The supertrend indicator uses the average true range to generate a “Supertrend line,” signaling buy and sell phases for BTC/USD. Bitcoin has remained above this line since the conclusion of its last bear market at the end of 2022.
Examining historical Bitcoin bull markets, the current decline from its peak remains relatively moderate. Since 2016, BTC/USD has experienced multiple 38% corrections, suggesting a potential downside target of $45,750.
Adam Back, founder and CEO of Blockstream, criticized the market’s volatile sentiment, advocating for hodlers to increase exposure not only to Bitcoin but also to MicroStrategy, which holds the largest BTC treasury among public companies. He emphasized the need to maintain perspective, noting that previous bull runs also weathered similar -30% drawdowns.
Rekt Capital, another respected trader and analyst, echoed a similar sentiment, noting that the current pullback of -21% over 45 days aligns closely with historical averages. He highlighted patterns suggesting that Bitcoin’s price retracement and duration are within typical ranges observed in previous cycles.
Looking ahead, both analysts suggest that Bitcoin’s price history appears to be repeating itself, underscoring the cyclical nature of market movements.
As a disclaimer, this article refrains from providing investment advice. Readers are encouraged to conduct their own research and exercise caution when making financial decisions.