The price of Bitcoin (BTC) dropped 5.5% from Sept. 3 to Sept. 5, reaching a low of $55,860. This decline from $59,090 led to a modest $58 million in liquidated leveraged long futures, suggesting that bulls were not caught off guard. Despite this price weakness, Bitcoin derivatives signal resilience, indicating that traders are neither using excessive leverage nor displaying overconfidence.
Some analysts argue that Bitcoin's 2024 bull run has officially ended, citing the $73,757 all-time high that occurred almost six months ago. On the other hand, some traders view the 30% pullback during this period as typical market behavior. Regardless of market sentiment, historical BTC price rallies following previous halving cycles typically took five to six months to materialize.
Armando Pantoja, a crypto and blockchain tech educator, notes that Bitcoin tends to start rallying around 10 months after an increase in the monetary supply. In this instance, the US M2 began expanding in February 2024, suggesting that the added liquidity could influence Bitcoin's price by December if past trends hold true. However, regardless of whether historical patterns repeat, Bitcoin traders appear less reactive to price corrections, as indicated by derivatives metrics.
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