Bitcoin Faces 26.62% Pullback: Is This the Deepest Decline Yet?

CryptoQuant’s Research Director Julio Moreno reported that Bitcoin has experienced a notable decline of 26.62% from its peak of $109,500. This retracement could signify the most pronounced pullback within this current bull market cycle. Comparing this recent performance to historical patterns, Bitcoin has seen more drastic declines in the past; specifically, it retracted 83% in 2018 and faced a 73% correction in 2022. This current drop, while significant, falls short of the extreme downtrends observed in prior market cycles, suggesting that while there is considerable selling pressure, it has not yet reached a historically critical threshold.

Furthermore, insights from ecoinometrics indicate that Bitcoin could experience challenges in achieving a quick recovery in the near term. Their analysis emphasizes: “When the Nasdaq 100 Index remains below its long-term average return, Bitcoin’s trajectory tends to falter, increasing the likelihood of further retreats.”