Bitcoin Nears Short-term Decline to $50,000 Amid Market Correction and Hong Kong ETF Launch
Summary:
Bitcoin has seen a 21% drop from its peak value, which corresponds with previous market correction patterns, indicating a possible short-term decline to around $50,000. This downturn, on track to match the longest-duration decrease of this cycle, follows Bitcoin's failure to maintain the key $59,000 threshold. If the value drops below $60,000, leveraged long positions worth over $750 million across all exchanges could be liquidated. Lesser-than-expected trade volumes were reported for the first Bitcoin ETFs in Hong Kong due to challenging macroeconomic conditions.
Bitcoin's value has experienced a dip of approximately 21% from its peak, paralleling previous bull market downturns. However, past patterns suggest that Bitcoin could potentially drop to around $50,000 in the short term. The current price of Bitcoin, according to CoinMarketCap, sits at $57,780 following a 12% weekly decrease; this figure is a 21.6% drop from its highest value of $73,750 recorded on March 14. Data presented by respected Bitcoin analyst Rekt Capital indicates that the present downturn is the steepest of this cycle, being a 23.6% decrease. Bitcoin's present drop has outdone the previous record decrease in this period and is on the way to matching the timeframe of the longest decrease. This downward trend duration currently stands at 48 days, nearing the 63-day record. Past Bitcoin ascensions have witnessed similar trends, for instance, five corrections exceeding 30% and an additional 29% correction was seen during the 2018 bull run. The failure of Bitcoin to maintain the important $59,000 threshold, which also represents the short-term holder realized price (STH-RP), increases chances for Bitcoin to return to the $50,000 range, according to Jag Kooner, the head of derivatives at Bitfinex. If Bitcoin's value drops below $60,000, cumulative leveraged long positions worth over $750 million across all exchanges could be liquidated. Bitcoin's price fell below $60,000 shortly after the launch of the first spot Bitcoin ETFs in Hong Kong, which generated daily trading volumes of $12.4 million on its first day. However, the Hong Kong ETFs failed to meet expected trade volumes due to tough macroeconomic conditions as noted by James Wo, founder and CEO of DFG. Investors are reminded to do their due diligence as all investment and trading ventures carry inherent risk.
Published At
5/1/2024 6:21:51 PM
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