Bitcoin Short ‘Too Normal’ Amid $66k BTC Price Slump
Bitcoin (BTC) fell to weekly lows as traders remained undisturbed in the bull market ahead of the March 15 Wall Street open.
Analysis of BTC's Decline: “Nothing to See Here”
Data from Cointelegraph Markets Pro and TradingView showed the price of BTC on Bitstamp dropping to $65,569.
After making new highs the previous day, momentum faded before seeing its first major test of support levels. At the time of writing, Bitcoin's old record high of $69,000 from 2021 has failed to excite the market.
In response, market observers appeared calm. Bitcoin bull markets, usually involve corrective actions as part of a broader uptrend.
The well-known analyst On-Chain College wrote on X (formerly Twitter) that “Bitcoin price recovery on this move is -10% when corrections are more than -30%.
“This decline comes after a strong move to highs > 95% of the supply is sitting on windfall profits. Nothing to see here, very typical bull market behavior.”
Prominent trader Credible Crypto discussed how low the market could go and pointed to the bid liquid centered around $64,000. Open interest (OI), he added, has already declined significantly in the downtrend.
The X posts section of the day reads, “It's a logical place to expect a bounce/reversal from the rest of the OI sweep.”
Next, an equally optimistic trader Jelle compared the current correction to historical norms.
“So far this cycle, the average return of the main Bitcoin is about 20%,” he told X subscribers with an explanatory chart.
“If we're getting the same amount of return here — that would make us $58,000. Not saying it will happen, but it might be wise to make sure you survive if it happens to you.”
In an additional post, Jelle admitted that the recent BTC price action has taken him by surprise.
“I don't see this coming back, but I'm not worried,” he concluded, adding, “He's expecting a much higher price in the coming months.”
Traders shy on short BTC bets
According to Cointelegraph, liquidity increased sharply during the day as long stretches were used without cutting.
Related: Bitcoin Has 6 Months Until ETF ‘Liquidity Crisis' – New Analysis
According to the latest data from on-chain monitoring source CoinGlass, combined BTC liquidity was nearly $300 million in the 24 hours at the time of writing.
In ongoing market coverage, popular trader Skew noted that few market participants are interested in taking short positions.
“Spot selling is still driving the price down and it's here for a long time,” he wrote about Bitcoin's future.
Perp premiums will only return to $20-$30, with spot auctions the lower the better. While we haven't seen much of the panic subside yet, most hedgers will make profits, leading to loans.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
