The post Bitcoin (BTC) Sees Largest Pullback of Cycle Before Significant Recovery appeared on BitcoinEthereumNews.com.

Joerg Hiller Aug 13, 2024 03:37 Bitcoin experienced its largest pullback of the current cycle, dropping 33.32% before recovering by nearly 28%, according to Bitfinex Alpha. Bitcoin (BTC) recently experienced its most significant pullback of the current cycle, dropping 33.32% from its all-time high of $73,666, according to Bitfinex Alpha. The cryptocurrency’s price plummeted to nearly $49,000, marking the lowest level since February, before rebounding by almost 28% to climb back above the crucial $60,000 threshold. Market Metrics and Indicators Key metrics such as the Mayer Multiple, which compares Bitcoin’s current price to its 200-day moving average (200DMA), dropped to 0.88 during the recent downturn. This level, not seen since the FTX collapse in November 2022, indicates a strong bearish phase as Bitcoin traded significantly below its average historical trend. On-chain metrics further underscore the intensity of the sell-off. The Short-Term Holder Realized Price (STH Cost-Basis), reflecting the average purchase price of recent buyers, currently stands at $64,860. Bitcoin’s spot price recently approached the -1 standard deviation (SD) band below this STH Cost-Basis, a rare occurrence historically seen in only about 7.1% of trading days. This highlights the severity of the current market conditions. The Short-Term Holder MVRV ratio, which compares the current market price to the purchase price for newer investors, shows that this group is holding the largest unrealized losses since the bear market lows of 2022. These metrics underline the deep bearish sentiment and stress among short-term investors, which typically occurs at local bottoms. Broader Economic Context The US economy continues to display resilience, with recent data offering a more optimistic outlook despite ongoing concerns of a potential slowdown. Last week, a significant drop in jobless claims and a steady rise in wholesale inventories provided a solid foundation for economic growth, particularly in the second quarter. Household…

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Filed under: News - @ August 14, 2024 1:24 pm