Bitcoin has been declining since it reached its all-time high of $126,000 in October. While uncertainty remains for Bitcoin, which has dropped to $60,000, Bitfinex has published an updated assessment. Bitfinex stated that the recent decline of Bitcoin represents the deepest correction of the current cycle.
Bitcoin subsequently recovered, but according to analysts, this rebound indicates a phase of stabilization following a significant correction rather than a clear trend reversal.
Analysts have argued that the correction was not a forced liquidation, but rather the result of independently accumulated spot sales.
During this period, Bitcoin recorded its largest daily market capitalization drop ever, with the price falling to $60,100.
At this point, analysts have stated that daily losses have exceeded $1.2 billion according to on-chain indicators, interpreting this as a signal that the correction is approaching its final phase.
Analysts have recently stated that Bitcoin's recent recovery signals a stabilization phase rather than a return to an upward trend, adding that the range between $60,000 and $74,000 is a key level for BTC.
"For now, it is likely that the range between $60,000 and $74,000 is the key area of difficulty for Bitcoin.
Whether this region will constitute the base of a medium-term recovery or an area of consolidation before further declines remains to be seen through subsequent flows and the macroeconomic context."
