The price of Bitcoin (BTC) fell 2.12% in the past day, following news of the spot approval of Ethereum ETF. This surprised traders who were bullish on new record highs after the cryptocurrency’s strong rally earlier this week, gaining 9% to $72,000. The sudden drop saw BTC drop from a high of $71,980 on May 21 to an intraday low of $66,606 on May 24.
Trader and analyst Mags suggested that the current correction in BTC could be a ‘fake-out’, which is a recurring pattern for the cryptocurrency. Mags explained that Bitcoin tends to consolidate within a certain range for a few weeks or months, then break below that range, trapping bearish traders, before quickly recovering and continuing its upward movement.
Matthew Hyland, another analyst, pointed out that BTC’s price is approaching a retest of the demand zone between $64,000 and $67,000, which represents the neckline of an inverse head-and-shoulders pattern. Hyland highlighted that Bitcoin successfully broke above this pattern and closed a daily candle above it, indicating a bullish structure and potential tests of resistance before hitting all-time highs.
Unfortunately, those who bet on BTC’s recovery from current levels on May 23 were faced with significant losses. During a 24-hour period, a total of $227.51 million in leveraged positions were liquidated, including $159.3 million in long positions, according to data. from Coinglass. In the last hour alone, $46.75 million in BTC leveraged positions were liquidated, of which $39.6 million were long positions.
