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Bitcoin falls 2%, but traders say this is a healthy pullback before the next breakthrough
Bitcoin falls 2%, but traders say this is a healthy pullback before the next breakthrough
Bitcoin (BTC) the price fell 2.12% last day, following the news of the Ethereum spot ETF approval. This surprised traders who were optimistic about new all-time highs after the cryptocurrency’s strong rally earlier in the week, gaining 9% to $72,000. The sudden drop saw BTC plummet from a high of $71,980 on May 21 to an intraday low of $66,606 on May 24.
Trader and analyst Mags suggested that the current correction in BTC could be a “fake,” which has been a recurring pattern for the cryptocurrency. Mags explained that Bitcoin tends to consolidate within a range for a few weeks or months, and then drop below that range, trapping bearish traders, before quickly rebounding and continuing its upward movement.
Matthew Hyland, another analyst, pointed Note that BTC price is approaching a retest of the $64,000 to $67,000 demand zone, which represents the neckline of an inverse head and shoulders pattern. Hyland pointed out that Bitcoin successfully broke out of this pattern and closed a daily candle above it, indicating a bullish structure and a potential test of resistance before reaching all-time highs.
Unfortunately, those betting on BTC recovering from current levels suffered significant losses on May 23. During a 24-hour period, a total of $227.51 million in leveraged positions were liquidated, of which $159.3 million belonged to long positions. second to Coinglass data. In the last hour alone, $46.75 million in leveraged BTC positions were liquidated, of which $39.6 million was long.