Bitcoin is facing renewed volatility after losing the $110,000 level just a few days ago, a breakdown that has fueled uncertainty across the 0 are attempting to reclaim this crucial support, but fear of a deeper correction continues to weigh heavily on 1 every failed rebound, traders are left questioning whether this pullback is simply a pause within the broader uptrend or the beginning of a larger 2 Reading: Ethereum Demand Stays Strong As Exchange Reserves Keep Falling – Details Crypto analyst Darkfost has shared new data providing context for the current 3 Bitcoin’s most recent all-time high near $123,000, the asset has retraced by roughly -12%.
According to Darkfost, this move remains well within the boundaries of a normal correction, especially when compared to historical pullbacks in previous bull 4 corrections are often healthy, serving to reset leverage, cool overheated sentiment, and create fresh entry points for long-term 5 uncertainty remains in the short term, history suggests that Bitcoin’s current retracement does not necessarily signal the end of the cycle. Instead, it may represent a period of stabilization before the next major 6 Correction Aligns With Historical Patterns According to Darkfost, Bitcoin’s current retracement should be viewed within the broader context of this cycle rather than as a sign of structural 7 more closely, since the first all-time high in March 2024, the largest drawdown recorded so far reached 28%.
Importantly, Bitcoin has not corrected more deeply than that throughout the ongoing bull market. Historically, the most severe pullbacks in bullish phases have averaged between -20% and -25%, placing the present move well within the expected 8 Bitcoin now down roughly 12% from its latest all-time high of $123,000, the retracement is still modest compared to prior cycle 9 emphasizes that this behavior is not unusual and could even extend further without breaking the underlying bull 10 fact, such drawdowns are often healthy and necessary in long-term 11 serve several functions: flushing out excessive leverage in the derivatives market, cooling down overheated sentiment, and shaking out short-term 12 the same time, they create new entry opportunities for investors who may have missed earlier stages of the 13 long-term holders and institutions, these phases are less about panic and more about preparation.
Historically, similar corrections have preceded renewed strength, as Bitcoin stabilizes before resuming its upward 14 the current pattern holds, this retracement may ultimately strengthen the market foundation, setting the stage for the next leg of 15 Reading: Binance Network Activity Outpaces Ethereum As Active Addresses Double Since April Testing Recovery Level After Deep Pullback Bitcoin is attempting to recover after a sharp correction that took the price down to the $108K 16 shown in the chart, BTC recently bounced back above $110K but continues to struggle to sustain 17 rejection from the $123K zone marked the cycle’s most recent all-time high, and the market has since been in a retracement 18 12-hour chart highlights how BTC dipped below its 200-day moving average (red line) but quickly rebounded, signaling that bulls are still defending this crucial 19 50-day (blue) and 100-day (green) moving averages, however, are trending downward, suggesting that pressure remains in the short 20 will need to reclaim the $112K–$115K zone to shift sentiment back toward bullish 21 Reading: Galaxy Digital Sells 1,167 Bitcoin Amid Ongoing Volatility On the downside, losing the $108K level could open the door to a deeper correction toward $105K or even the $101K region, where the 200-day MA sits as the last line of 22 is consolidating in a fragile position.
A decisive move above $115K could reignite bullish momentum, but failure to hold current support may confirm a prolonged correction phase before any attempt at a new all-time 23 image from Dall-E, chart from TradingView
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