Bitcoin Dips by 2% But Traders Say Its a Healthy Pullback Before Next Leg Up

Bitcoin Drops 2% But Investors Say This Is A Healthy Setback Before The Next Rise

Bitcoin (BTC) price fell 2.12% over the past day following spot Ethereum ETF approvals. This surprised investors who were optimistic about the cryptocurrency’s all-time highs after its strong rise earlier in the week, up 9% to $72,000. The sudden decline caused BTC to fall from $71,980 on May 21 to an intraday low of $66,606 on May 24.

Trader and analyst Mags suggested that the current correction in BTC may be “fake,” a recurring pattern for the cryptocurrency. Mags explained that Bitcoin tends to consolidate in a certain range for a few weeks or months, then fall below that range, trapping bearish traders, before quickly recovering and continuing its upward move.

Another analyst, Matthew Hyland, noted that BTC price is approaching a retest of the $64,000 to $67,000 demand zone, which represents the neckline of the inverse head-and-shoulders pattern. Hyland emphasized that Bitcoin successfully broke out above this pattern and closed a daily candle above it, indicating a bullish structure and potential resistance test before reaching new all-time highs.

Unfortunately, those who bet on BTC to recover from current levels faced significant losses on May 23. According to the data, a total of $227.51 million in leveraged positions were liquidated during the 24-hour period, of which $159.3 million belonged to long positions. From Coinglass. In the last hour alone, $46.75 million worth of BTC leveraged positions were liquidated, of which $39.6 million were long positions.