$BTC Bitcoin’s fall from its all-time high of $126,199 may be ongoing rather than complete. The correction is far from over, given the history of previous cycles. Following its 2017 and 2021 rallies, Bitcoin corrected between 70% and 75% from the all-time high.
If the pattern repeats itself, Bitcoin could slip to the $31,000 level, erasing all gains since October 2023. This is likely to occur if institutions are under pressure to shed their BTC holdings, Bitcoin Treasury companies sell Bitcoin, and capital rotates from Bitcoin to Gold, the prevailing safe haven.
At the time of writing, Bitcoin is hovering around the $67,000 mark. The key question is: will Bitcoin drop further, and if so, when will that happen? It typically takes 2-3 months, and February could see Bitcoin bleed.
While there are talks of the end of the four-year cycle, if that is true, then Bitcoin could surprise traders and attempt a recovery. However, as of now, there aren’t enough catalysts to support a recovery.
Binance announced it had completed the purchase of 4,545 Bitcoin on Thursday. Purchases at this scale may not be sufficient to support demand and keep BTC above the $60,000 threshold.
Two key levels to watch are the $60,000 support and the $70,000 resistance. A clean break above $70,000 could hint at a recovery in Bitcoin in the coming weeks.
Conversely, a firm breakdown below below $60,000 could trigger further liquidations and extend Bitcoin’s current bleed.
