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Mt. Gox repayments trigger one of the largest liquidation processes in recent years, Bitcoin faces a battle to maintain the bull market. According to data from TradingView, Bitcoin’s price drop reached 5% on July 5, and now investors are looking at support lines that bulls need to defend. For popular trader Matthew Hyland, the first support on the radar is $52,000.
What’s Happening on the Bitcoin Front?
This process forms the base of Bitcoin’s super trend indicator on weekly time frames, establishing a foundation for the price that has been valid since the all-time high of $73,800 in mid-March. The Supertrend uses the average true range to create a supervisory line that defines buy and sell phases for the BTC/USD pair. The pair has been trading above the super trend line since the end of 2022, when Bitcoin’s last bear market ended.
Considering previous Bitcoin bull markets, the current drop from all-time highs is still modest. BTC/USD has experienced a 38% drop multiple times since 2016, targeting $45,750 in this process. Commenting on this process, Blockstream’s founder and CEO Adam Back criticized the indecisive market sentiment. Instead, he argued that investors should increase their purchase rate of both Bitcoin and MicroStrategy shares, which holds the largest Bitcoin treasury among any publicly traded company:
“In previous bull runs, there was almost a -30% drop, and we are currently at about -26%. In fact, recent drops seem less deep, but people forget the normal bull market model. Don’t panic, buy the dip or buy some MicroStrategy shares with Bitcoin.”
Popular Trader Comments on Bitcoin
Popular trader and analyst Rekt Capital is also unfazed by the extent of this negativity. The famous figure shared the following comment along with charts on social media platform X:
“This pullback is -21% deep and lasts for 45 days. In this cycle, the average pullback depth is -22% and the average pullback duration is 42 days. In terms of pullback duration, this is above the average.”
The famous figure added in another X post that the Bitcoin price history is repeating itself, as discussed, alongside a comparative table in the long term.
