Key Points
- Bitcoin’s price dropped by 2.5%, surprising traders who expected new all-time highs after its early week rally to $72,000.
- Analysts suggest that Bitcoin is following a similar pattern to previous cycles and project a price of $100,000.
Bitcoin’s price has taken a surprising 2.5% dip, catching traders off guard who had been expecting new all-time highs after the cryptocurrency’s early week rally to $72,000.
The sudden drop in the price of Bitcoin (BTC) from a high of $71,980 on May 21 to an intra-day low of $67,550 on May 23 left leveraged long traders stunned.
Bitcoin’s Predicted Path
Independent analyst Jelle has commented on the recent price movements, stating that Bitcoin is still following a similar path to its 2016-2017 cycle.
Jelle predicts that once Bitcoin breaks the 2021 all-time highs, it will enter a parabolic uptrend, projecting a Bitcoin price of $100,000.
Trader and analyst Mags suggests that the current BTC correction could be a “fake out,” a pattern it has displayed since bottoming out at $15,500.
Bitcoin’s Recent Recovery
Jelle also noted that BTC’s recent recovery above $65,000 saw it break “all key resistance levels,” including the 50-day exponential moving average (EMA), which is currently at $64,665.
This has resulted in “hidden bullish divergence,” further supporting Bitcoin’s upside.
Analyst Matthew Hyland noted that BTC price was close to retesting the demand zone between $64,000 and $67,000, representing the neckline of an inverse head-and-shoulders pattern.
However, those betting on BTC’s recovery from the current levels lost big on May 23, as the downturn liquidated $159.3 million in long positions worth amid a 24-hour total wipeout of $227.51 million.
With the latest drawdown, $46.75 million in BTC leveraged positions have been liquidated over the last hour alone, with $39.6 million of these being longs.
