Bitcoin’s Recent Dip is Considered “Very Normal Bull Market Behavior,” Analyst Says
Bitcoin (BTC) experienced a dip below weekly lows, reaching as low as $65,600 after hitting fresh all-time highs. However, market observers remained calm, attributing the dip to typical corrective moves within a broader uptrend. Analysts noted that a 10% retracement in Bitcoin’s price is normal during bull runs, contrasting it with the possibility of greater than 30% corrections.
How Far Could BTC Drop?
Amid the recent market correction, discussions about the potential depth of the market decline have emerged. Trader Credible Crypto highlighted a block of bid liquidity around $64,000 as a logical level to expect a bounce or reversal, given the significant decrease in open interest (OI) during the drawdown. Meanwhile, trader Jelle compared the current correction to historical patterns and pointed out that the average major Bitcoin pullback in this cycle has been about 20%. He suggested that if a similar-sized pullback were to occur, it could bring the price to around $58,000.
Bitcoin Dip Leads to Over $800 Million in Liquidations
As leveraged long positions unwound, liquidations increased significantly. According to data by CoinGlass, long and short traders suffered more than $810 million in losses across major centralized exchanges over the past 24 hours. Crypto exchange Binance took the lion’s share of these liquidations at around $300 million, followed by OKX at $293 million and Bybit at around $94 million. Bitcoin-tracked futures experienced $280 million in both short and long liquidations over the past day while Ethereum-linked futures saw over $138 million in liquidations.
Meanwhile, popular trader Skew revealed that few market participants are willing to take short positions. Spot selling was leading the price lower, and more long positions were being liquidated. Skew noted that panic shorting was not yet evident, with most activity involving profit-taking hedges, which often lead to price bounces.
Hot Take: Bitcoin’s Dip is a Normal Part of Bull Market Cycles
Bitcoin’s recent dip is considered “very normal bull market behavior” by analysts. The market correction and retracement are seen as typical within a broader uptrend. While discussions about the potential depth of the decline have emerged, traders remain optimistic about higher prices in the coming months. However, caution and preparedness are advised in case the market experiences further declines. The dip has also resulted in over $800 million in liquidations across major exchanges.
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