2024

Bitcoin

when

The Bitcoin&nbsp;price is down by 2.5% on May 23, surprising traders who were certain that new all-time highs were in the cards after the cryptocurrency’s early week rally to $72,000.&nbsp;
Data from <a href="https://subscription.cointelegraph.com/">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/" target="_blank" rel="noopener nofollow">TradingView</a> showed that leveraged long traders were caught off guard as the price of Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)&nbsp;suddenly dropped from a high of $71,980 on May 21 to an intra-day low of $67,550 on May 23.
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 <img src="https://s3.cointelegraph.com/uploads/2024-05/53700903-b145-4190-af87-f5b393c33f3f.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD daily chart. Source: TradingView
 </figcaption>
</figure>
“Bitcoin is still following a similar path to 2016-2017,” <a href="https://x.com/CryptoJelleNL/status/1793633674870837465" target="_blank" rel="noopener nofollow">said</a> independent analyst Jelle, reacting to what has become a familiar pattern for BTC in previous cycles. 
Jelle said that Bitcoin would enter a parabolic uptrend once it breaks the 2021 all-time highs, projecting a <a href="https://cointelegraph.com/news/3-reasons-why-bitcoin-traders-say-a-btc-price-trend-reversal-is-overdue"></a><a href="https://cointelegraph.com/news/3-reasons-why-bitcoin-traders-say-a-btc-price-trend-reversal-is-overdue">Bitcoin price of $100,000</a>.
Trader and analyst Mags <a href="https://x.com/thescalpingpro/status/1793554343058428267" target="_blank" rel="noopener nofollow">explained</a> that the current BTC correction could be a “fake out,” a pattern it has displayed since bottoming out at $15,500. 
<blockquote data-ct-non-breakable="true">
 “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.”
</blockquote>
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 <img src="https://s3.cointelegraph.com/uploads/2024-05/5c01d428-3f0d-494f-b667-0ed4b61872ac.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/thescalpingpro/status/1793554343058428267" target="_blank" rel="noopener nofollow">Mags</a>
 </figcaption>
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Jelle also noted that <a href="https://cointelegraph.com/news/bitcoin-67k-but-analysis-warns-10-btc-price-drop">BTC’s recent recovery above $65,000</a> saw it break “all key resistance levels,” including the 50-day exponential moving average (EMA), which is currently at $64,665. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/2c6168d7-7830-402c-9c3c-36bf431bf96d.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/CryptoJelleNL/status/1793625695920529695" target="_blank" rel="noopener nofollow">Jelle</a>
 </figcaption>
</figure>
Jelle further explained that this has resulted in “hidden bullish divergence,” further supporting Bitcoin’s upside.
Related: <a href="https://cointelegraph.com/news/bitcoin-price-150k-in-2024-base-case-tom-lee">Bitcoin price at $150K in 2024 is ‘base case’ — Tom Lee</a>
Fellow analyst Matthew Hyland noted that the 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. 
<blockquote data-ct-non-breakable="true">
 “Bitcoin broke out above the H&amp;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.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/82ff593b-2c2d-434b-8fc4-80ab72ee32ff.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-day chart. Source: <a href="https://x.com/MatthewHyland_/status/1793641484215787637" target="_blank" rel="noopener nofollow">Matthew Hyland</a>
 </figcaption>
</figure>
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 <a href="https://cointelegraph.com/news/bitcoin-price-new-73-6-k-all-time-high-etfs-eat">all-time high of $73,835</a>.
The analysts explained that this range provides a technically high risk-to-reward buy. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/2b1759b4-ff84-4082-925a-b762e12e611c.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD daily chart. Source: <a href="https://x.com/scottmelker/status/1793716703962222857" target="_blank" rel="noopener nofollow">Wolf Of All Streets</a>
 </figcaption>
</figure>
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.
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 <img src="https://s3.cointelegraph.com/uploads/2024-05/d1da43be-ace5-405b-891f-93ab964f823b.png" alt="" title="">
 <figcaption style="text-align: center;">
 Total crypto liquidations. Source: Coinglass
 </figcaption>
</figure>
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.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Traders say Bitcoin price correction a ‘fake out’ before the next leg up

Cointelegraph

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