Bitcoin faces a fight to maintain its bullish momentum as Mt. Gox refunds trigger the biggest liquidation cascade in years.
BTC Price Supertrend Support, Approaching First Test Since 2022
According to data from Cointelegraph Markets Pro and TradingView, the Bitcoin (BTC) price drop reached 5% on July 5 alone, and traders are now focusing on the bullish boundary.
The first price level that popular trader Matthew Hyland is watching is the $52,000 level.
This forms the floor of Bitcoin’s Supertrend indicator on a weekly basis, and is the basis for the price action since the all-time high of $73,800 in mid-March.
Supertrend uses the average true range to create the “Supertend line” that separates the buy and sell phases of BTC/USD. The pair has been above the Supertrend line since late 2022, when Bitcoin’s last bear market ended.
Looking at previous Bitcoin bull markets, the current decline from all-time highs is still modest.
Since 2016, BTC/USD has fallen 38% multiple times, with the capitulation target being $45,750.
Commenting on the phenomenon, Blockstream founder and CEO Adam Back criticized the volatile market sentiment, arguing instead that holders should increase their exposure to Bitcoin and shares of MicroStrategy, the company that holds the largest BTC treasury of any publicly traded company.
“Just a heads up. Zoom in. The previous bull market had 6 drawdowns of -30%. It’s currently at -26% (was -27%),” he wrote on X.
“Actually, the recent dip looks less deep, but people forget the normal bullish pattern. Don’t panic, buy the dip. Or buy some $CMSTR with BTC.”
Analyst: Bitcoin History “Repeats Itself”
Popular trader and analyst Rekt Capital is also indifferent to the decline.
Related: Mt. Gox to Start Accepting Redemptions in Bitcoin and Bitcoin Cash
“This pullback is -21% deep and lasts 45 days. The average retrace depth in this cycle is -22% and the average retrace duration is 42 days,” he calculated.
“It’s a pretty average retrace in terms of retrace depth. It’s an above average pullback in terms of retrace duration.”
He added in an additional X post with a long-term comparison chart that the BTC price history is “repeating as it is said.”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.