Bitcoin’s ability to maintain $60,000 price level backed by historical data
Bitcoin faced a nearly 6% decline in the past 24 hours, briefly dropping below the crucial $60,000 price level. Rekt Capital, a trader, pointed out that historical data indicates Bitcoin’s ability to maintain this support level without further downside. BTC has historically not broken the re-accumulation range resistance early in the post-halving period or lost this support during that timeframe.
The trader highlighted a possible formation of a new pattern for Bitcoin following the recent retrace, noting a downtrend channel on the weekly chart and emphasized the importance of monitoring the retrace’s development.
The correction led to liquidation of over $162 million in long BTC positions within 24 hours, with long Bitcoin-related liquidations constituting 51% of the total daily losses by traders, according to Coinglass data.
Despite the pullback, the trader suggested that it could be beneficial for the continuity of the current bull cycle. The pace of the cycle had accelerated after Bitcoin reached its all-time high before the halving, and the recent corrections are seen as a way to moderate this rapid pace.
Additionally, Bitfinex analysts observed signs of a local bottom for Bitcoin, with over $544 million in outflows from Bitcoin exchange-traded funds last week, typically indicating the formation of a bottom.
The trader highlighted that Bitcoin is slowing down the rate of acceleration in this cycle through consolidation in the ReAccumulation Range. The rate of acceleration has decreased from 260 days to 160 days, indicating a deliberate pace in the current cycle.
In conclusion, the recent market movements and corrections in Bitcoin’s price are viewed as part of a healthy process for the cryptocurrency’s overall market cycle, with various analysts and traders closely monitoring these developments for potential future trends.
