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Bitcoin’s Recent Dip is “Very Normal Bull Market Behavior,” Analyst Says

Bitcoin (BTC) dipped below its weekly lows on Friday, reaching a nadir of $65,600 following a surge to fresh all-time highs.

Nevertheless, market analysts remained unperturbed, attributing the decline to routine corrective maneuvers within a broader upward trend.

A prominent commentator known as On-Chain College, boasting a substantial following of over 52,000 on X platform, pointed out that a 10% retracement in Bitcoin’s price is customary during bullish phases, drawing a comparison with the possibility of more significant corrections exceeding 30%.

Highlighting that the majority of Bitcoin’s supply is currently held in unrealized profits subsequent to the substantial surge to all-time highs, On-Chain College characterized the downturn as “typical behavior in a bullish market.”

“This pullback follows a robust rally to all-time highs with over 95% of the supply held in unrealized profit,” the commentator remarked. “No cause for concern; this is very much in line with normal bullish market behavior.”

How Far Could BTC Drop?

In light of the recent market correction, discussions have arisen regarding the potential depth of the downturn.

Trader Credible Crypto identified a block of bid liquidity at approximately $64,000 as a plausible level for a bounce or reversal, particularly given the significant reduction in open interest (OI) during the decline.

“If we witness a bounce/reversal, this level could be a logical point, especially alongside a clearance of the remaining accumulated OI,” the trader remarked.

Meanwhile, trader Jelle analyzed the current correction in relation to historical trends, noting that the average major pullback in this Bitcoin cycle has been around 20%.

He suggested that a pullback of similar magnitude might bring the price down to approximately $58,000.

Despite expressing surprise at the extent of the pullback, Jelle remained optimistic about higher prices in the forthcoming months.

However, he cautioned against complacency and advised readiness in the event of further market declines.

Bitcoin Dip Leads to Over $800 Million in Liquidations

As leveraged long positions unwound, liquidations surged significantly.

According to CoinGlass data, both long and short traders collectively faced losses exceeding $810 million across major centralized exchanges within the past 24 hours.

Specifically, 246,416 traders found themselves liquidated, with long positions accounting for approximately $667 million in losses, while short positions accounted for around $143 million.

Among the exchanges, Binance led the pack in liquidations with approximately $300 million, followed closely by OKX at $293 million and Bybit at around $94 million.

Bitcoin-tracked futures witnessed approximately $280 million in combined short and long liquidations during the same period, while Ethereum-linked futures saw liquidations surpassing $138 million.

Meanwhile, prominent trader Skew disclosed that only a small number of market participants are inclined to take short positions.

The downward pressure on the price primarily stemmed from spot selling, resulting in increased liquidation of long positions.

Skew observed that signs of panic shorting were not yet apparent, with the predominant activity involving profit-taking hedges. Such actions often precipitate price rebounds.

“The perpetual premium has returned to a modest $20-$30; a lower premium would be preferable with spot bids. Panic shorting isn’t prevalent yet; mostly it’s profit-taking hedges, which tend to trigger price rebounds.”

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