Traders say Bitcoin’s price correction is ‘fake’ ahead of next leg
The price of Bitcoin (BTC) fell by 2.5% today, surprising traders that new all-time high prices were in the cards after the cryptocurrency's first week rally to $72,000.
According to data from Cointelegraph Markets Pro and TradingView, BTC prices suddenly fell from $71,980 on May 21 to $67,550 intraday on May 23, and long traders got out of control.
“Bitcoin is still following the same path as in 2016-2017,” said independent analyst Jelle, responding to a common pattern for BTC in previous cycles.
Gel says Bitcoin will enter a parabolic rally after breaching the 2021 all-time highs, signaling a $100,000 bitcoin price.
Trader and analyst Mags said the current BTC correction above $15,500 could be a “false” pattern.
“Price consolidates in a range for a few weeks or months, then breaks down below the range, trapping all the bears, followed by a quick recovery and another leg out.”
Jelle noted that BTC's recent rally above $65,000 has broken “all key resistance levels,” including the 50-day exponential moving average (EMA).
Jelle also explained that this has caused a “hidden bullish divergence”, which further supports Bitcoin's upside.
Related: ‘Base Case' for Bitcoin Price of 150k in 2024 – Tom Lee
The price of BTC is close to retesting the interest zone between $64,000 and $67,000, according to Matthew Hyland, an inverse head and shoulders pattern representing a neckline.
“Bitcoin broke above the H&S and closed the daily candle above it. A payoff at $67k is always possible. So, if that happens, don't panic. The overall structure is on a higher timeframe. Bitcoin tested the last resistance before the all-time high.”
Popular analyst Wolf Of All Streets shared the following chart, suggesting that the bulls would like to see the $67,000 support area (the center of the range) as support. This indicates that the price is now at $67,000 and an all-time high of $73,835.
Analysts explained that this region offers a highly rewarding buy from a technical point of view.
However, those betting on BTC's recovery from current levels lost big on May 23, as the decline resulted in the loss of $159.3 million in long positions amid a 24-hour total of $227.51 million in liquidations, according to Coinglass data.
At the last drop, $46.75 million in BTC leveraged positions were released in the last hour alone, of which $39.6 million was long.
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.
