Bitcoin's price saw a surprising 5% drop over the past few days, catching many traders off guard. However, analysts suggest this is merely a healthy pullback. Here’s why.
The leading cryptocurrency fell from a high of $71,680 on May 21 to an intra-day low of $67,550 on May 27.
Independent analyst Jelle noted that Bitcoin is mirroring its 2016-2017 pattern. Once Bitcoin breaks its 2021 all-time highs, Jelle projects it could reach $100,000. He highlighted that Bitcoin's recent recovery above $65,000 broke all key resistance levels, supporting further upside.
Trader and analyst Mags described the correction as a "fake out," a move designed to trap bears before another leg up. Matthew Hyland pointed out that Bitcoin is close to retesting the demand zone between $64,000 and $67,000, indicating a bullish structure.
The Wolf Of All Streets emphasized the importance of the $67,000 support area, suggesting the price could now range between $67,000 and an all-time high of $73,835. Despite the downturn, long-term bullish sentiments remain strong among analysts.
In the latest correction, $159.3 million in long positions were liquidated.
Yet, this shakeout is seen as part of Bitcoin's volatile journey toward higher peaks.
Analysts continue to view these corrections as opportunities rather than setbacks.