Bitcoin Price Drops 7.6% from All-Time High Amid Market Correction
Bitcoin price momentum has attracted attention as it gradually sheds some of its gains acquired in recent weeks.
Bitcoin has dropped 7.6% from its all-time high (ATH) of $99,645 reached last week, trading at $92,476 at the time of writing. This marks a 4.6% decline in the past day alone.
What To Expect From This Current Bitcoin Decline
Amid the ongoing correction in Bitcoin's price, an analysis by CryptoQuant’s BaroVirtual indicates a steady decline in Bitcoin reserves across major crypto exchanges. This pattern suggests a market in a "bull run."
The analyst compared this to the March to November 2020 period when exchange reserves also declined, leading to substantial inflows in December 2020 that increased buying pressure.
The current dip in exchange reserves implies that participants who missed earlier accumulation opportunities may now be entering the market ahead of the next price surge.
BaroVirtual noted:
Some market participants who have not properly accumulated Bitcoin earlier are likely doing so now, realizing that this is likely the last downward correction before another upward price surge.
Retail Traders Yet to Join The Market
While institutional investors and high-net-worth individuals dominate the current market, retail traders appear to be lagging.
CryptoQuant analyst Woominkyu highlighted this trend, noting that the Korea Premium Index—a key metric for retail involvement—remains below -0.5, indicating limited activity from retail participants in the ongoing rally.
Woominkyu stated that the Korea Premium Index has historically shown spikes preceding Bitcoin’s price peaks, suggesting that monitoring this index could provide insights into potential market tops.
The absence of retail traders in the recent crypto rally is significant; their eventual participation could lead to increased buying pressure and potentially drive Bitcoin’s price higher.
Currently, the global crypto market cap has decreased nearly 6% in the past day, resulting in a valuation of $3.34 trillion.
According to data from CoinGlass, 206,491 traders have been liquidated in the past 24 hours, with total liquidations around $624.99 million.
Featured image created with DALL-E, Chart from TradingView.