Bitcoin (BTC) price fell 2.5% today, surprising traders who had been confident the cryptocurrency would hit a new all-time high after rising to $72,000 earlier in the week.
Data from Cointelegraph Markets Pro and TradingView shows that leveraged long traders were caught off guard as the price of BTC suddenly fell from a high of $71,980 on May 21 to an intraday low of $67,550 on May 23.
“Bitcoin is still following a similar path to 2016-2017,” independent analyst Jelle said, reacting to what has become a familiar pattern for BTC from previous cycles.
Jelle said that if Bitcoin breaks its all-time high in 2021, it will enter a parabolic upward trend, pushing the Bitcoin price to $100,000.
Trader and analyst Mags explained that the current BTC correction may be a “fake”, a pattern that has emerged since bottoming at $15,500.
“Price may consolidate within a range for a few weeks or months, then break below the range, trapping all the weakness, followed by a quick recovery and another rally.”
Jelle also noted that BTC recently recovered above $65,000, breaking “all major resistance levels,” including the 50-day exponential moving average (EMA), which is currently at $64,665.
Jelle explained that this creates a “hidden bullish gap,” further supporting Bitcoin’s bullish trend.
Related: A Bitcoin price of $150,000 in 2024 is the ‘base case’ — Tom Lee
Fellow analyst Matthew Hyland pointed out that BTC price was close to retesting the demand zone between $64,000 and $67,000, which represents the neckline of an inverted head-and-shoulders pattern.
“Bitcoin broke above H&S and closed the daily candle above it. A remaining breakout of $67K is always possible. So don’t be surprised if that happens. The overall structure is bullish on higher time frames. “Bitcoin tested the last resistance before hitting an all-time high.”
Popular analyst Wolf Of All Streets shared the following chart and said that bulls would like to see the $67,000 support area (center of the range) holding support. This indicates that the current price lies between $67,000 and the all-time high of $73,835.
Analysts described this range as technically offering a high risk-to-reward buy.
However, bets that BTC will recover from current levels are likely to end in May, as the downtrend led to the liquidation of $159.3 million in the value of long positions, with a total of $227.51 million wiped out in 24 hours, according to data from Coinglass. We suffered heavy losses on the 23rd.
The recent decline resulted in the liquidation of $46.75 million in BTC leveraged positions over the past hour, of which $39.6 million were long positions.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.