The price of Bitcoin has continued to slide downwards, plunging below the $63k price after recording the high price of $73,000 last week.
The decline in the price of Bitcoin dragged other cryptocurrencies lower, as Ethereum lost more than 5% and is recently trading at $3,277 as at the time of writing this report, after hitting the $4,000 price last week for the first time since December 2021.
As the price of Bitcoin continues to rally on a downward trend, currently trading at $63,590, it has reportedly sparked a widespread sell-off, after reports revealed that profit-taking and large outflows from the Grayscale Bitcoin Trust are partly behind the sell-off.
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Additionally, that profit-taking led to a spike in long liquidations of leveraged bitcoin positions. About $122 million in long liquidations occurred across centralized exchanges Monday, according to Coin Glass.
As the crypto community remains abuzz with discussions of an upcoming halving event, with the recent downturn in the market, consensus suggests that halving has not fully priced in, and the current retracement in Bitcoin price is viewed by several crypto analysts as the last chance to buy the dip.
It is understood that every four years, Bitcoin undergoes a “halving,” which cuts the daily supply of newly minted coins by 50%, an event that’s historically caused prices to soar. As the next halving rapidly approaches, on or around April 19, investors are waiting to see whether this familiar pattern is repeated.
Several analysts have attributed Bitcoin’s dip from its all-time high above $73,000 to around $63,000 as a fleeting opportunity for investors to acquire the cryptocurrency at a more favorable price.
Despite the current price adjustments, analysts maintain a positive long-term outlook for Bitcoin, predicting a cycle high of $150,000 by 2025. This optimistic projection reflects the belief that the recent price corrections are a natural part of the market’s ebb and flow, offering strategic buying opportunities for those looking toward the future.
According to analysts at Bernstein, Bitcoin’s recent $10,000 retreat from all-time highs of over $73,000 to around $63,000 presents a buying opportunity.
“We believe the current phase of Bitcoin consolidation is temporary and offers a dip buying opportunity prior to Bitcoin halving,” Bernstein analysts said.
In a note to clients, Bernstein described the current phase of consolidation in Bitcoin as temporary, which offers a chance for traders to reposition their risk before the halving event. The analysts maintain a bullish outlook on Bitcoin and the entire crypto ecosystem, viewing the next 18 months as an opportunity for growth.
Several other analysts have disclosed that the slump in the price of Bitcoin is a result of a healthy market correction, noting that is going to be followed by a vicious upside. Crypto traders are urged not to panic, with analysis showing that in the last Bull run, BTC went through eight corrections of 20% or more before surging to the upside.