Bitcoin (BTC) remains in sell-off mode, evidenced by a loss of upside momentum. The cryptocurrency is 45% off its all-time high near $69K, and could find lower support around $30K.Read MoreFeedzy
BTC was trading at $37,700 at press time and is down 15% over the past week.
The downtrend since November 2021 remains intact, albeit within a long-term uptrend. That means price action has a tendency to rise exponentially following cycle lows. For now, indicators do not suggest BTC is at a cycle low.
Previous drawdowns suggest selling pressure could continue over the short-term.
Currently, BTC is 43% off its all-time high near $69,000 reached in November 2021, compared with a 50% drop during the first half of 2021, and a 70% decline during the March 2020 crash. The most extreme peak-to-trough decline was roughly 80% during the 2018 bear market.
In this cycle, buyers will need to maintain support around the $27,000-$30,000 support zone to maintain the broader trend.
The chart below shows previous sell-off extremes, created on Koyfin, a financial data provider.
Interactive chart showing bitcoin’s price along with the percentage drawdown from the peak (lower chart). (Koyfin/CoinDesk)
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