On the 7th (local time), on-chain analysis firm CryptoQuant (CryptoQ) said that Bitcoin is on the brink of its deepest correction in the current bull market cycle.
Julio Moreno, head of research at uant, said Bitcoin is currently down about 26.62% from its all-time high of $109,500, and is the biggest "drawdown" in the current bull market.
Bitcoin has seen bigger corrections in previous cycles, falling 83% from its high in 2018.
It fell 1.5% in 2019, before plummeting 73% in 2022. The current decline is relatively modest in comparison, but it is still likely to be the biggest decline yet this cycle.
Market analysis resource Ecoinometrics said Bitcoin could suffer a short-term rebound. “Historically, the Nasdaq 100 has seen a strong upswing in price over the last year, but it’s not without its challenges.”
"If the Nasdaq 100 falls below its long-term average annual return, Bitcoin's growth rate will also slow, increasing the risk of a severe correction," he said. Currently, the Nasdaq 100's annual return is essentially flat.
The recent downtrend also appears to have weighed on Strategy, which has been trading at 1.5% for the last 10 days since March 31st to 6th April.
According to a document from Strategytracker, "To date, approximately $35.65 billion has been invested in Bitcoin."
"I've invested a lot of money into buying Bitcoin, and my return on investment over the past five years has only been 17%," he said. It remains to be seen whether Bitcoin can maintain above $70,000.
Tocoin is testing its 50-week exponential moving average (EMA) for the first time since September 2024, and in past cycles, a weekly close below this moving average has signaled the start of a full-blown bear market.
The key short-term support is the $74,000 level, which is the high reached in early 2024.
However, the demand band between $65,000 and $69,000 is considered to be the area where greater liquidity has formed, and it is expected to reach its all-time high of 2021.
The $69,000 level is also an important psychological support level.
2025/04/08 12:53 KST
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