The price of Bitcoin experienced a surprising 2.5% decline on May 23, catching traders off guard. Many traders were confident that the cryptocurrency would reach new all-time highs after its rally to $72,000 earlier in the week.
Data from Cointelegraph Markets Pro and TradingView revealed that leveraged long traders were taken by surprise as the price of Bitcoin dropped from $71,980 on May 21 to a daily low of $67,550 on May 23.
Independent analyst Jelle commented on the situation, stating that Bitcoin is following a similar pattern to the 2016-2017 period. Jelle believes that once Bitcoin surpasses the all-time highs of 2021, it will enter a parabolic uptrend, potentially reaching a price of $100,000.
Trader and analyst Mags suggested that the current correction in BTC could be a “fake out,” as it has displayed similar patterns in the past after hitting a low of $15,500.
Jelle also pointed out that BTC’s recent recovery above $65,000 resulted in breaking key resistance levels, including the 50-day exponential moving average at $64,665. This has led to “hidden bullish divergence,” further supporting Bitcoin’s upward movement.
Another analyst, Matthew Hyland, noted that the BTC price was approaching a retest of the demand zone between $64,000 and $67,000, which represents the neckline of an inverse head-and-shoulders pattern.
To support this analysis, popular analyst Wolf Of All Streets shared a chart, suggesting that bulls would want to see the $67,000 support area hold. This indicates that the price will likely range between $67,000 and the all-time high of $73,835.
However, those who were betting on BTC’s recovery from the current levels suffered significant losses on May 23. The downturn resulted in the liquidation of $159.3 million in long positions, contributing to a total wipeout of $227.51 million within 24 hours, according to Coinglass data.
In the past hour alone, $46.75 million in BTC leveraged positions have been liquidated, with $39.6 million of that being longs.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.