After an almost 10% decline in the last week, Bitcoin was holding steady on Friday at $57,000. It remained flat for the last 24 hours when compared to the ether’s 5% rise and SOL token’s 8% rise in the same term. According to CryptoQuant’s CEO Ki Young Ju, market sentiment looks bearish. Investors of BTC are shorting it in the perpetual swap futures market. The rising leverage indicates some side benefits which entice investors to liquidate their long positions. The long-term sentiment for bitcoin remains bullish as long as it keeps receiving support up to $53,000.
Bitcoin has declined from its peak and currently, it is 13% down from its maximum high of $69,000. A minor drawdown is not unusual once a cryptocurrency price reaches its maximum high, even though losses can go higher than 10-15% in a bull market. The corrections can be expected for bitcoin in the long-term. At the same time, drawdowns seem limited within 50-60% before recovery is noticed. Some analysts think this drawdown indicates BTC prices can go down further.
Bitcoin Holders Remain Optimistic
The demand from traditional bitcoin holders remains strong. According to the crypto data company Glassnode, even when the price of bitcoin sees up to 20% correction from its all-time peak, long-term holders refuse to sell their BTC assets. They do not trust the price in a panicky cryptocurrency market.
Overall, Bitcoin has been stabilizing after seeing a 10% decline. Even with the virtual currency market taking a breather, its supporters keep coming onboard and this trend is expected to continue in the coming years