When traders see the next move, Bitcoin drops 17.79% from the peak

• Bitcoin has dropped by 17.79% from its highest price, but it is still strong.
• Bitcoin fell 80% from its previous highs before falling to those highs.
• If Bitcoin holds, it could push towards $90,000, but it could result in a deeper drop.

The 17.79% drawback from Bitcoin’s all-time best (ATA) already hints at some fixes, though moderate, compared to past cycles. Previous records show that Bitcoin plummeted much deeper in the red depth, when it often did not exceed -80% during previous cycles before returning to recovery.

This time is no exception. This market drawdown remains relatively tame compared to them. In the meantime, Bitcoin’s price action has adhered to its classic boom and bust theory.

A historical context showing the resilient nature of Bitcoin

The chart continues with Bitcoin’s long-term view. All bull runs are followed by a disastrous correction phase before establishing a new high. These drawdowns saw Bitcoin Retrace -85% in 2011, -87% in 2015, -84% in 2018 and -77% in 2022. It shows a pattern of recurrence in casting prices carried over by euphoric profits.

Compared to its magnitude, the current -17.79% constitutes just noise. Therefore, it becomes even stronger that Bitcoin exists in harmless state at this point. It will be lowered before climbing towards a new high due to the possibility of a retracement. With bullish momentum, you can recover without serious incursions as previously recorded.

With support levels generally held, traders are closely watching whether Bitcoin can rebound from this relatively shallow drawdown, or whether losses range from -30% or -40%. Logarithmic price trends show that Bitcoin remains well aligned in terms of long-term bull markets. However, changes in macroeconomic conditions could pose a threat to further downside development. If consensus is built at this level, if you confirm the advantage at $90,000, a failure to hold induces a deeper reduction test through the long-standing support zone.

Market sentiment is cautiously optimistic

In the meantime, market sentiment continues to hold a positive outlook as recent downsides have hardly damaged the surface of the bare market size. Most long-term holders view this stage as just the expected momentum in the cyclical flow of Bitcoin, awaiting some confirmations before a major relocation. If Bitcoin has followed the recovery pattern in the past, the integration will ultimately halt by updating the upward pressure that could potentially be yet another short-term history high in the next phase of the cycle.