Bitcoins Record Winning Streak Comes to an End with LongAwaited Correction

Bitcoin experienced a significant price drop of 14.74% over three days, falling to $53,540 on July 5, breaking a four-month price range. Over the past month, Bitcoin has lost more than 25% of its market value, putting an end to its record-breaking winning streak. Capriole Investments’ crypto analyst, Charles Edwards, highlighted this milestone, noting that Bitcoin had gone 427 days without a 25% drawdown, the longest in history.

Edwards described this as an impressive achievement but also a necessary correction for the leading cryptocurrency. In the past, Bitcoin had gone through a 364-day winning streak without a significant retracement in 2012, leading to a subsequent bull rally and new record highs.

The recent market crash led to over $662 million in liquidations for cryptocurrency traders, with Bitcoin dominating long-position liquidations by 35%. The total market cap index dropped from $2.25 trillion to $1.90 trillion in just 60 hours, resulting in a $311 billion loss, one of the largest hits in recent times.

Bitcoin’s price fell from $72,000 to $53,542 in just 28 days, a decrease of 25.67% after failing to break through resistance and breaking down from the $60,000 support level. Currently trading at $55,270, Bitcoin is expected to retest the price range.

The weakening labor market in the United States, as indicated by recent macroeconomic data, could benefit Bitcoin, as fears of an impending recession may lead to a change in the Federal Reserve’s interest rate policy. This could renew investor confidence, especially after panic sales triggered by Mt. Gox and Germany.

With increased volatility expected in the crypto market, traders are urged to exercise caution, especially with leverage positions. It is important to note that the information provided in this article is not investment advice and investing in cryptocurrencies carries risks.