Bitcoin’s price experienced a significant decline of over 7.1% in the past day, dropping below the $65,000 threshold for the first time since March 24.
Historically, the 14th week of the year has proven to be one of the worst for Bitcoin’s price performance. According to Coinglass data, Bitcoin’s price typically drops by an average of 8.33% during this week.
In the past 24 hours, Bitcoin’s price fell by more than 6%, reaching a daily low of $64,610 at 1:35 pm (UTC). However, trading volume for the cryptocurrency increased by over 75% during the day, reaching $46 billion, as reported by CoinMarketCap.
Rekt Capital, a popular crypto analyst, argues that Bitcoin’s price momentum will continue to slow down as the Bitcoin halving approaches. The analyst suggests that Bitcoin failed its post-breakout retest, indicating a need for the price to be sustained above the $65,600 weekly range low to avoid further losses.
If Bitcoin’s price were to fall to the $65,000 mark, Coinglass data suggests that over $249 million worth of long leveraged positions would be liquidated across all exchanges.
Following the recent correction, Bitcoin has reset several key metrics that previously indicated an overheated market. The relative strength index (RSI), which measures whether an asset is oversold or overbought based on recent price changes, fell to 48 on the daily timeframe. This suggests that Bitcoin is no longer overbought, according to Tradingview.
Andrey Stoychev, the head of Prime Brokerage at Nexo, attributes Bitcoin’s price correction to newcomers who entered the market after the approval of the United States’ spot Bitcoin exchange-traded funds (ETFs). Stoychev expects a short-term correction due to these latecomers seeking to invest in Bitcoin.
Traders should keep a close eye on the $64,000 mark, as there is over $17.21 million worth of Bitcoin futures liquidation leverage on Binance. Additionally, Coinglass data indicates that an additional $9.92 million worth of BTC could be liquidated at the $63,500 mark.
In the past 24 hours, over $152.5 million worth of leveraged Bitcoin positions were liquidated, with $109.11 million worth of long positions, as reported by Coinglass.
Bitcoin’s sudden drawdown led to over $165 million of leveraged crypto liquidations in less than two hours on Tuesday morning.
On the other hand, the dormant Bitcoin supply has seen a resurgence. Since its peak in December 2023, long-term holder (LTH) supply has decreased by 900,000 BTC, with Grayscale accounting for a third of this decline.
Please note that this article does not provide investment advice or recommendations. It is essential for readers to conduct their own research before making any investment or trading decisions.