Bitcoin isn’t expected to retest its records until later this year, but data suggests the correction could get much worse before the recovery begins — similar to what happened between the cryptocurrency’s two all-time highs in 2021 Performance. This key threshold can help traders determine whether Bitcoin is in a bull or bear market. Historically, downward crossovers in the index have marked major corrections, including those between May and July 2021 and between November and December 2021 of the same year. The value is extremely negative, which can be regarded as a potential signal of a bottom. Julio Moreno, head of research at CryptoQuant, said: “Bitcoin is currently at a level where a local bottom could form or a major ‘Summer 2021’ style correction could occur.” He added: “Unrealized profits for traders Currently at -17%, it is the most negative since shortly after the FTX exchange crashed in November 2022. “When traders’ profits reach the current extreme negative levels, prices usually bottom out.” Continued. Bitcoin is now retesting key support at $57,000 for a third day after falling below that level last week. The price of the flagship cryptocurrency has been plummeting since hitting an all-time record of over $73,000 in March, with a rapid correction. Since then, the cryptocurrency has struggled to return to these highs. Despite the depressed price, demand for Bitcoin has been trending upward since May due to the growing number of whales holding the cryptocurrency. However, Bitcoin network activity suggests that the coin still faces some resistance. “Stablecoin liquidity has still not accelerated, which is a necessary condition for price increases,” Moreno said. “Although there have been some positive changes in the stablecoin market [USD Coin]USDT lacks corresponding growth [Tether] Market capitalization could delay or dampen the potential for significant price gains in Bitcoin. In addition, large and medium-sized Bitcoin miners are still selling some of their Bitcoin holdings.
