Key Points
- Bitcoin’s price has dropped approximately 21% from its all-time high, potentially falling to $50,000 in the near term.
- The current market correction is the most significant in this cycle, according to Bitcoin analysts.
Bitcoin’s (BTC) price has experienced a significant drop, approximately 21% from its all-time high. This drop aligns with previous bull market corrections, however, historical patterns suggest that Bitcoin could potentially fall to the $50,000 mark in the near term.
BTC’s price saw a drop of over 12% on the weekly chart, bringing it to $57,780 as of 1:10 p.m. UTC. This is a 21.6% decrease compared to its all-time high of $73,750, which was reached on March 14.
Analyzing the Current Market Correction
The current market correction is the most significant in this cycle, according to Rekt Capital, a well-known Bitcoin analyst. The analyst noted that Bitcoin has already surpassed the deepest retrace in this cycle and is close to equaling the longest retrace in this cycle.
Similar corrections have taken place during previous Bitcoin rallies. For instance, during the 2018 bull run, Bitcoin experienced five corrections of over 30% and another correction of 29%.
Potential Dip to $50,000
Bitcoin recently lost a significant support level at the $59,000 mark, which also served as the short-term holder realized price (STH-RP), or the average inflow price of the spot Bitcoin exchange-traded funds (ETFs).
According to Jag Kooner, head of derivatives at Bitfinex, losing the $59,000 mark could lead to Bitcoin revisiting the $50,000 mark. He noted that over $750 million worth of cumulative leveraged long positions could be liquidated across all exchanges if Bitcoin’s price fell below $60,000.
Bitcoin’s price fell below the $60,000 mark shortly after the debut of the first spot Bitcoin ETFs in Hong Kong. These ETFs generated lower-than-expected trading volumes due to challenging macroeconomic conditions.
James Wo, the founder and CEO of DFG, explained that these ETFs were launched in different market conditions. The market was pricing in around six rate cuts in 2024 when U.S. ETFs were launched earlier this year. However, due to sticky inflation data, markets are now pricing in only one rate cut, which has seen crypto prices tumble recently.
