Bitcoin price is down by 2.5% today, surprising traders who were certain that new all-time highs were in the cards after the cryptocurrency’s early week rally to $72,000.
Data from Cointelegraph Markets Pro and TradingView showed that leveraged long traders were caught off guard as BTC price suddenly dropped from a high of $71,980 on May 21 to an intra-day low of $67,550 on May 23.
“Bitcoin is still following a similar path to 2016-2017,” said independent analyst Jelle, reacting to what has become a familiar pattern for BTC in previous cycles.
Jelle said that Bitcoin will enter a parabolic uptrend once it breaks the 2021 all-time highs, projecting a Bitcoin price of $100,000.
Trader and analyst Mags explained that the current BTC correction could be a “fake out,” a pattern it has displayed since bottoming out at $15,500.
“Price consolidates inside a range for a few weeks or months, then it breaks down below the range, trapping all the bears, followed by a quick reclaim and another leg up.”
Jelle also noted that BTC’s recent recovery above $65,000 saw it break “all key resistance levels,” including the 50-day exponential moving average (EMA), which is currently at $64,665.
Jelle further explained that this has resulted in “hidden bullish divergence,” further supporting Bitcoin’s upside.
Fellow analyst Matthew Hyland noted that BTC price was close to retesting the demand zone between $64,000 and $67,000, representing the neckline of an inverse head-and-shoulders pattern.
“Bitcoin broke out above the H&S and closed a daily candle above it. A rest of the breakout at $67K is always possible. So, if it were to happen, do not be alarmed. The overall structure is bullish on a higher timeframe. Bitcoin tested the last resistance before all-time highs.”
Popular analyst Wolf Of All Streets shared the following chart, saying bulls would want to see the $67,000 support area (center of range) hold as support. This indicates that the price will now range between $67,000 and an all-time high of $73,835.
The analysts explained that this range provides a technically high risk-to-reward buy.
However, those betting on BTC’s recovery from the current levels lost big on May 23, as the downturn liquidated $159.3 million in long positions worth amid a 24-hour total wipeout of $227.51 million, according to data from Coinglass.
With the latest drawdown, $46.75 million in BTC leveraged positions have been liquidated over the last hour alone, with $39.6 million of these being longs.
