Key Points
- Bitcoin's price dropped past weekly lows before the March 15 Wall Street open, but traders remain confident in the bull market.
- Market observers suggest that the price dip is a normal part of Bitcoin's broader uptrend and expect higher prices in the coming months.
Bitcoin (BTC) experienced a drop in price, falling below weekly lows prior to the Wall Street opening on March 15. However, traders appeared undeterred by this dip, maintaining their faith in the ongoing bull market.
Analysis of Bitcoin's Price Dip
Data showed a downside in Bitcoin's price, reaching $65,569 on Bitstamp. This came after the cryptocurrency hit fresh all-time highs the previous day, only for the momentum to fade as support levels began seeing their first significant retest. At the time of writing, Bitcoin's previous record high of $69,000 from 2021 was not providing the market with any lift.
Despite this, market observers remained calm, arguing that such corrective moves are typical in Bitcoin bull markets. It was pointed out that Bitcoin's price retracing by 10% in this move is not alarming, especially considering that corrections greater than 30% are normal during bull runs.
Market Predictions and Expectations
In terms of how low the market could potentially go, a block of bid liquidity focused around $64,000 was flagged. Open interest (OI) had already significantly decreased on the drawdown. This was seen as a logical place to expect a bounce or reversal, along with a wipe of the remaining built up OI.
Another trader compared the current correction to historical norms, stating that the average major Bitcoin pullback is about 20%. If a similar-sized pullback were to occur here, it would put Bitcoin at $58,000. However, he also acknowledged that the latest Bitcoin price action had taken him by surprise. Despite this, he maintained his optimism, expecting much higher prices in the coming months.
As reported, liquidations increased considerably on the day as leveraged long positions unwound. Combined Bitcoin liquidations stood at nearly $300 million for the 24 hours to the time of writing. Despite the liquidations, few market participants were in the mood to take short positions.
Spot selling was still leading the price lower and more longs were taken out. However, there was not much panic shorting yet, mostly hedges taking profit which leads to bounces.
