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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