Bitcoin has fallen 20% from its last all-time high of $ 58,000


Bitcoin prices have fallen over the past few days, retreating from their last all-time high and losing nearly 25% of their value in less than 48 hours.

The world’s largest digital currency fell to $ 44,964.49 this morning, according to data from CoinDesk.

Falling to that level, the cryptocurrency had slashed its price by 23%, after hitting a record price of around $ 58,300 on February 21, additional data from CoinDesk reveals.

After falling to its recent low, bitcoin rebounded somewhat, approaching $ 50,000, and has mostly traded between that price point and $ 46,000 since.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

“ Healthy ” withdrawal

More than one article written about Bitcoin’s latest downtrend has described it as a ‘crash’.

However, several market analysts have taken a different view, describing Bitcoin’s latest retracement as perfectly natural.

“From a weekly standpoint, this is the first time Bitcoin has seen red in a month,” said Jason Lau, COO of the OKCoin cryptocurrency exchange.

“We had 4 straight green candles, so a setback here is quite healthy and expected,” he noted.

“Bitcoin remains up 45% from 30 days ago,” Lau said.

Joe Zhou, a serial entrepreneur and derivatives trader, also intervened, stating that:

“I think this is a healthy reset for over-leveraged positions.”

He added that “it allows institutional buyers to enter the market with more upside liquidity without driving up prices too quickly.”

Bullish outlook

Looking ahead, several analysts have pointed to positive market conditions that could cause bitcoin to maintain its uptrend.

“This drop has caused pain for some traders as nearly $ 6 billion of liquidations have been seen in the market over the past 48 years, by far a new ATH in liquidations,” noted Lau.

“However, long-term market interest remains strong, leaving the door open for a resumption of the uptrend,” he said.

“Open interest in Bitcoin futures is still at an all-time high and the recently launched Canadian Bitcoin ETF has seen an incredible rally, racking up over 8,000 BTC in a matter of days.

Vinny Lingham, co-founder and CEO of Civic, put things a bit more direct, articulating his thoughts via a Twitter message:

“Crypto cycles only peak when we are strapped for cash, which has not yet been fully invested,” he said in the tweet.

“It’s a healthy fix, IMHO, and sets us up for a much bigger move.”

Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS.



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