Bitcoin’s price has fallen approximately 21% from its all-time high, yet this process, while in line with previous bull market corrections, suggests that Bitcoin could soon drop to the $50,000 level according to historical patterns. The weekly chart shows Bitcoin’s price has fallen over 12% to $57,780, which is 21.6% lower than the all-time high of $73,750 reached on March 14, according to CoinMarketCap data.
Bitcoin Price Continues to Decline
In a May 1st post by popular analyst Rekt Capital, the current process is said to represent the deepest retracement of this cycle. The famous analyst explained his thoughts with these words:
“Bitcoin has already overshadowed the deepest pullback in the cycle and is just 13 days away from matching the longest pullback in this cycle.”
Similar corrections have occurred in previous Bitcoin rallies. According to a post by famous analyst and investor Laura on April 30, during the 2018 bull run, Bitcoin saw five corrections of over 30% and an additional correction of 29%.
Notable Details on the Bitcoin Front
During this process, Bitcoin lost a significant support level at $59,000, which also serves as the average entry price of spot Bitcoin traded funds on exchanges. According to Jag Kooner, head of futures at Bitfinex, losing the $59,000 level could lead Bitcoin to revisit the $50,000 zone:
“Based on these, while price predictions may not be appropriate, STH-RP, whether Bitcoin holds or loses it, or based on the average ETF buyer cost, the $50,000 level is a very important support level.”
Blockchain data analysis platform Coinglass suggests that if Bitcoin’s price falls below $50,000, over $750 million in long positions will be liquidated across all exchanges.
Bitcoin price fell below $60,000 a few days after the launch of the first spot Bitcoin ETF funds in Hong Kong, and the first day’s trading volume reached $12.4 million. According to James Wo, founder and CEO of DFG, the launch of Hong Kong ETF funds generated lower than expected trading volumes due to tough macroeconomic conditions:
“These ETF funds were launched under different market conditions. US ETF funds were launched earlier this year when the market had priced in about six interest rate cuts for 2024. Considering inflation data, markets are now pricing in only a single rate cut, which is affecting crypto prices.”
